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In the lectures videos, we identified three tasks any collusive arrangement or cartel would need to accomplish if they were going to be successful in raising price above the competitive level for an extended period of time.
List these three tasks and describe why each task is important in the cartel’s efforts to keep price above the competitive level (that is, discuss the role each plays in getting and/or maintaining a higher than competitive price).
What, how and for who apply to the following the economic decision. Should the company makes its own spare parts or buy them from an outside vendor.
Now suppose that w > 0. What additional types of strategic effects have been introduced into the game? In a reaction function diagram show the different strategic effects of advertising and describe the final equilibrium.
a company that recently spent $10,000 to develop a statistical software package.
Create a table where Q equals 0, 10, 20, 22.5, 30, 40 50 and 55. In the table include Quantity, Price, Total Revenue, Marginal Revenue (where MR equals the change in TR divided by the change in Q in the table), MR where MR=a-2bQ (include an explanati..
Graph the demand curve, and give some verbal interpretation. Compute the intercept and slope of the demand curve.
application barriers to entry and product homogeneity and their effectsbarriers to entry are forces that inhibit firms
Find the optimal output and retail price for a vertically integrated monopolist, either using a graph or calculus. Illustrate answer with graph.
In a world in which all markets were perfectly competitive, the ceaseless search for maximum profits will drive all prices down to the level of minimum average cost in the long run. Agree or disagree with this statement and explain your reasoning.
Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
determined the point price elasticity of demand at P=$3. What is the new point price elasticity if price is raised to P=$4.50? Comment on the change in elasticity
Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms. (At the same time, one internet business such as grocery home deliveries have continually suff..
If the dollar is devalued against gold and the pegged rate is changed to $40 per ounce, illustrate what does this imply for the exchange value of the pound. Explain your answer.
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