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Question 1:
Arrange the following four kinds of market on a continuum where one end will have perfectly competitive market and another extreme is monopoly. Plot these four markets on a continuum either from perfect competition to monopoly or from monopoly to perfect competition (be careful in indicating two other kinds of markets i.e., monopolistic competition and oligopoly). Now please comment whether and why market power in the hands of sellers is increasing or decreasing along the continuum.
Question 2:
Discuss situations involving binding price ceiling and price floor. You can pick your examples from housing industry, health care industry, or from any other industry.
What steps can a government take to ensure that sustainable development is always considered in assessing which major economic projects or investment proposals to accept.
A deposit of $3,000 is made in a savings account that pays 7.5 percent interest compounded annually. How much money will be available to the depositor at the end of 16 years?
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 company's settlement obligations are expected to raise its average total cost per pack by about $60. Illustrate what effect will this have on its optimal price.
If aggregate demand shifts because of a wave of pessimism about stock prices, those who favor a policy that "leans against the wind" would advocate the
Consider the market for laptop computers. The demand for laptops is Q = 1800 – 3P. Suppose the supply of laptops is given by Q = –200 +2P. What is the equilibrium price of laptops? What is the equilibrium quantity of laptops? What is the price elasti..
For this discussion question, you will apply cost principles to business problems. A sunk cost is one that has already been incurred and cannot be recovered. Economic theory supports that only prospective (or future) costs are relevant to a decision...
How would you use these cost and revenue estimates to determine whether a sales force increase or possibly a decrease is warranted.
The expected value is. You want to run a difference-in-difference experiment with a price increase for your lawn chairs in Miami. If you are worried about "leakage" with your control group, a poor comparison city would be
Suppose for a moment that someone with legislative power decides to abolish Fractional Reserve Banking and passes a law that forces banks to only lend the money they own, that is M0. What would be the economy-wise implications of such a change in the..
Compare the efficiency of monopolistic and perfectly competitive markets. Discuss the economic factors that lead to the development of monopolies. Examples of monopolies include electric utilities, railroads, airlines, cable television, and sports le..
Which statement does NOT correctly describe bonds?
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