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A profit maximizing monopolist is earning a positive economic profit. The wage it pays its workers rises. How will the firm's choice of price and quantity change in response to the wage increase? Assume that the monopolist is still earning a positive profit after the wage increase. Explain and use a diagram.
Discuss one (1) recent price change that you have noticed while visiting your local supermarket. Determine whether or not the price change that you identified was a result of a change in either supply or demand.
If the government imposes a limit on sales of a good or service by issuing a license that gives the owner the right to sell a given quantity of the good, the difference between the demand and supply price
Assume an industry is a duopoly. Elucidate the best response functions for A and B.
Compute the upper and lower limits within which marginal cost may vary without affecting the profit maximizing output or the price.
q.assume the demand and supply for wine within the u.s. areqd 100 - 20p u.s. demand curveqs 20 20p u.s. supply
illustrate what can you say about the price elasticity of demand for DVD players. Will this price reduction necessarily lead to an increase in profits for DVD player manufacturers.
"Anyone who tells you that markets left to their own devices always lead to socially beneficial outcomes is talking utter nonsense." Do you agree with this statement? Defend your position.
Assume that a country has a fixed exchange rate, but that the rate is above the rate that would occur if the central bank did not intervene to maintain it. That is that the desired "e" is greater than the "e" that would occur without central bank int..
We've talked a bit about decision making and strategic planning in the class so far, and this discussion thread lets us focus on the qualitative and quantitative aspects involved with making decisions. Can you think of a time you had to make a major ..
A Bristish pharmaceutical company spent several years and considerable funds on the development of a treatment for HIV patients. Now,with the protection afforded by patent rights,the company has the potential to reap enormous gains.
q1. what is meant by average propensity to consume? suppose that 1000 out of 10000 disposable income is saved. what is
Based on your graphical analysis, explain the predicted impact of Mr. Buchanan's proposed policies. Specifically state what happens to the exchange rate, the trade balance, the volume of imports, and the volume of exports.
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