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Suppose that another firm can enter this market by importing toys. Because of trade barriers the new firm's costs are somewhat high and its total cost function can be expressed as the following: CE(QE) = 20QE + 0.05QE. Now if the incumbent firms is committed to the monopoly output, what id is the effective demand curve faced by the new firm? How much does it choose to sell when it enters the market? What is the resultant market price? How much does each of the two firms earn in profits?
Describe (with appropriate figure) short run and the long run impact of immigration on native labour market when the immigrants and natives are complements.
Briefly discuss and illustrate the circumstances under which the minimum wage would (1) not lead to unemployement, amd (2) not cause a reduction in the total earnings of low-wage workers who are still employed.
Many home improvement retailers like Home Depot and lowes have low-price guarantee polices. Do these types of pricing strategies result in cutthroat competition and zero economic profits?
Do the estimated coefficients have the required signs to yield a-shaped AVC curve? Discuss the significance using the p-values.
Article: Why you should worry about big oil. The oil industry is in the business of extracting and selling oil. It is the goal of the oil companies to do this as efficiently as possible.
You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your two products differently.
You are given the following information about the personal computer (PC) industry: Find the NRP and the ERP. Show all calculations and formulas.
A monopolist encounters the following demand curve: P=120-0.02Q-What is the level of production, price and total profits per week?
Identify and describe the five sources of growth? Mention and explain four categories (types) of policies designed to promote growth.
A profit maximizing firm produces three products X, Y and Z. The firm has no costs. There are three customers 1, 2 and 3. What will be the price of each product if the firm decides to sell them separately?
The UAW labor contract with General Dynamics expired in October 2001. IN the months preceding the expiration date, bargaining teams for the UAW and General Dynamics met to negotiate a new contract.
Earlier this year the Federal Government USA approved the merger between Sirius and XM satellite radio companies. What, if any, shortcomings arise from a monopoly pricing strategy (efficiency and consumer surplus)?
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