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Q1. Currently, there is an incumbent monopoly in a market. A potential entrant may enter. The incumbent can spend X dollars lobbying to require all new firms that enter the market to use a pollution-abatement device that costs Y dollars to install. If lobbying occurs, the pollution-abatement device will be required. Draw the game tree describing this situation. Under what conditions will the monopoly lobby?
Q2. Suppose that the supply curve of healthcare services is perfectly inelastic (i.e., vertical). Analyze the impact of an increase in consumer income on the market price and quantity of the services. Now, suppose that the demand for healthcare services isperfectly inelastic (i.e., vertical), while the supply curve is upward sloping. Analyze the impact.
Sketch the extensive form of the game, carefully labelling the players that move and the actions they have available
One of the three ADM executives was actually an informant who tipped off the Feds about this conspiracy. Which executive was he. Why did he rat out his co-workers.
Semiconductor chips are used to store information in electronic products, such as personal computers. One of the early leaders in the production of these chips was Texas Instruments (TI).
DHL prides itself on having its own staff of more than 300,000 people spread across the globe, instead of relying on local agents.
Use indifference curves to distinguish between income and substitution effects, using the above techniques explain why the demand curve slope downwards, What are the main criteria for designing a tax system, To what extent do you think the national..
When would it make sense for a factory that is losing money to remain in operation
Explain what occurs when a new technology makes another one obsolete in terms of economic profit?
Austria has a history of strong hostility to nuclear power, and over the last twenty years the Austrians have shut down all of the reactors in Austria
A cousin of James Darwin, examined the relationship between the height of children and their parents
A machine used to cereal boxes dispenses, on the average, ounces per box. What is the largest value.
Suppose a firm pollutes a stream that has a recreational value only when pollution is below a certain level. If transaction costs are low.
The government budget is balanced, with government purchases and taxes both fixed at $1,000. Net exports are $100.
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