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If a large firm is found to possess monopoly power, what else is needed to find the firm guilty of monopolization? Why is possessing monopoly power insufficient for illegality? Explain the relevance of the “applications barrier to entry” in the Microsoft case. What strategies did Microsoft employ, according to the Justice Department, to preserve the applications barrier?
How do investment in technology and investment in capital differ? If banks hold excess reserves whereas before they did not, the money multiplier:
How can a domestic producer determine whether or not it has a comparative advantage in the production of a good or service?
Sales personnel, whether selling life insurance, automobiles, or pharmaceuticals, typically get paid on commission instead of a straight hourly wage. How does pay in a commission help solve the principal-agent problem between the owners of a business..
A single firm’s innovations in production technology often benefit the production of other firms, because these other firms learn about the new technology and can use some of the ideas in their own production. Why does this positive externality creat..
Which of the following rate measures the percentage change in price for a basket of goods and services consumed by a "typical" household --- the consumer price index?
what was equilibrium price of a box. Is this long run equilibrium price. how many firms are in this industry when it is in long run equilibrium.
Suppose that an automobile costs $30,000 in the United States and 25,000 Euros in France. Further suppose that the exchange rate is .8 (one US dollar = .8 Euros) What is the real exchange rate? In which country is the automobile less expensive?
In times of a struggling economic situation, determine the key steps that the Federal Reserve should take to help stabilize the economy. Next, explain how your proposed steps will affect money supply, interest rates, inflation rate, aggregate demand,..
The CEO has asked for your input into establishing budget timelines. briefly explain how you can use the concept of a budget calendar in describing reporting timelines to reply to the CEO?
During the business cycle, we can expect supply side economic growth:
Explore the differences between economic model, economic theory, and economic policy. How would you explain this to a friend who has no clue what the differences are. Compare and contrast.
A consumer has preferences between two goods, hamburgers (measured by H) and milkshakes (measured by M). His preferences over the two goods are represented by the utility function U = √H + √M. For this utility function MUH = 1/(2√H) and MUM = 1/(2√M)..
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