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Why do some industries evolve into an oligopolistic market structure? What are the advantages and disadvantages of the oligopolistic structure? How would an increase in a monopolist's fixed costs affect its profit-maximizing choice of price and quantity? Assume the monopolist charges a single price.
If a representative firm with total cost given by TC = 20 + 20q + 5q2 operates in a competitive industry where the short-run market demand and supply curves are given by QD = 1,400 - 40P and QS = -400 + 20P, the number of firms operating in the sh..
Do you agree that the only way to raise equilibrium quantity is to raise supply and demand together? Why agree or why not agree?
Explain what happens to the primary deficit in year t if the nominal interest rate in year t increases to 17%.
Describe the issues, challenges, or disadvantages to forming the strategic alliance (focus on supply chain). Provide an example that is not included in attached reference.
What will be the effect of the following events on the market for French wine and the quantity consumed? Distinguish between the short-run and the long-run impact.
What is the Marginal Rate of Transformation between sugar and tea?
Suppose that the market for radios is perfectly competitive and there is the simultaneous increase in supply and demand. What can be said about the new equilibrium relative to one before the shifts in supply and demand occurred?
Some commentators have argued that the failure of the “Super committee” is good thing for the economy? Do you agree?
Explain the law of demand. Why does a demand curve slope downwards? Distinguish between a change in demand and a change in quantity demanded.
Why do you think firm 1's marginal cost is lower than firm 2's marginal cost? Determine the current profits of the the two firms. What would happen to each firm's current profits if firm 1 reduced its price to $6 while firm continued to charge $8?
How would you know demand has increased? (What is the first piece of information which would lead you to conclude that demand has increased?)
Perform a White test for heteroskedasticity using auxiliary regression
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