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1. Apex Manufacturing charges Zenith Manufacturing with predatory pricing (that is, selling below cost) What do you think anti-trust authorities will want to consider before they determine whether prosecute Zenith for unfair practices in restraint of trade?
2. What is so bad about Price Fixing? Why does the government prohibit it?
3. In a 1956 antitrust case against DuPont, the Justice Department argued that the firm held a near monopoly in the cellophane market. Dupont argued that the definition of the market should be changed to include all wrapping paper. Why is this issue of market definition important? (DuPont's position prevailed).
4. The deregulation of the airline industry has generally led to lower fares and increased quantities produced. Use the model of demand and supply (no diagrams required- just verbal explanations) to show this change. What has happened to CONSUMER SURPLUS in the market?
I need all 4 questions answered please.
One of the most debated areas in economics is balancing the budget. The major contention is on the timing of the policy. If the government were to operate under a strict balanced-budget rule, what do you think would it have to do in a recession? Shou..
q. 1. continue to read chapter 4 of your text book that deals with demand analysis. every assignment ought to answer in
If a transaction imposes external costs, then: A) too much is being produced relative to the socially optimal amount. B) Production should be increased to generate enough profits to cover those costs. C) all production of the good or service should c..
Why do some workers make more money than others? Must everyone make the same wage? Explain your answers using labor market equilibrium.
A firm faces two consumers with the following demand functions: p1(q1) = 400 − q1. p2(q2) = 300 − q2. The firm’s constant marginal cost of production is, c = 50. The firm may charge an access fee and per unit price (that the consumers can choose not ..
f merging carried with it no cost advantage, determine the number of firms needed for the merger to be protable
Mining is proposed for a wilderness area that provides two benefits: recreation (due to backpacking opportunities) and biodiversity (there are endangered wildlife and plants). What is the present value of mining in the area (excluding effects on recr..
Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the size of the labor force..
Suppose an economy has no imports and no income taxes. Its marginal propensity to consume (MPC) is $0.75, and its real GDP level is $250 billion. Businesses increase their investment by $10 billion. Calculate the multiplier and the change in GDP.
What happens to the money supply if the Federal Reserve Bank increases interest rates at their next meeting in September? Make sure to include the appropriate equation. Make sure to include a money graph.
Describe some of the conflicting social, economic, and environmental costs, benefits, and issues associated with construction of the Three Gorges Dam.
The down payment is paid immediately, and the monthly payments are due at the end of each month. The effective annual interest rate Helen is paying is most nearly?
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