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Grocery stores and gasoline stations in a large city would appear to be examples of competitive markets. There are numerous relatively small sellers, each seller is a price - taker , and the products are quite similar.
a) How could we argue that these markets are not competitive?
b) Could each firm face a demand curve that is not perfectly elastic?
c) How profitable do you expect grocery stores and gasoline stations to be in the long run?
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An increase in the aggregate demand for goods and services will result in an increase in the amount of output firms are willing to produce, and this increase in output will be accompanied by: a. a decrease in the inflation rate.The long-run aggrega..
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Capital budgeting projects comprise all of the following with the exception. Asymmetric information represents a market situation.
Consider a monopolist has a marginal cost such that MC=Q. In that market demand follows the equation Q (of demand)=500-.5P. What is the price the monopoly will charge? How much will the monopoly produce?
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