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How does the possibility of Ricardian rents complicate inferring market power from market share and profits? Why does the capitalization of monopoly profits make it difficult to determine a firm's market power? Explain.
Supposes airline industry consisted of only two firms: American and Texas Air Corp. Let two firms have identical cost function, C(q) = 40q. Assume that demand curve for industry is given by P=100-Q and that each firm expects or to behave as a Cou..
Movie attendance dropped 8 percent as ticket prices rose a little more than 5 percent. Illustrate what is the price elasticity of demand for movie tickets. Could price elasticity be somewhat overestimated from these figures.
q.think of another good that you have purchased recently or you could continue with the good you selected in tda i. be
Derive an expression for average cost. Derive an expression for marginal costs. Is there any range of production characterized by scale of economies. Elucidate what production level are scale economies exhausted.
In Music Ville, the price elasticity of demand for CD players is 1.3, the income elasticity of demand for CD players is 0.4, and the cross elasticity of demand for CD players with respect to MP3's is 0.1. If incomes in Music Ville increase by 15% wit..
Education (e.g., elementary and secondary education, higher education-undergraduate and graduate) b. Government (e.g., the Social Security Office, the Internal Revenue Service)
Briefly discuss what measuring inequality involves, and provide two examples for doing so. measuring income inequality means dividing up the population into various groups and then comparing the groups.
Analysts have estimated the present values of the following effects over the expected useful life of the pool: PV (million dollars) State grant: 2.2 Construction and maintenance costs: 12.5 Personnel costs: 8.2 Revenue from county residents: 8.6 Reve..
Discuss the strategies that a particular company employed to either obtain or sustain a competitive advantage. For example, Microsoft arguably created a competitive advantage by offering a unique suite of products that now reside on many desktops. Th..
Illustrate and reinforce your answer with any theories from international trade and FDI theories.
We know tastes and preferences play an important role in demand. Do you think of any possible future "popular product".
The concept of balance of power is fundamental in international relations. What does it mean? How meaningful can it be at the beginning of the 21st century, given the impact of globalization and modern warfare in which one's opponents may not be atta..
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