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1) Over the course of a product life cycle, as the firm moves through the sequence of monopoly, oligopoly, monopolistic competition, and pure competition, the profit opportunities diminish. What strategies could the firm pursue to prolong its profitability?
2) Firms that operate in an oligopoly must take into consideration how competitors will react to their price and output decisions. In addition to the model used in the simulation, what other strategies might govern how one competitor reacts to another's price and output decisions?
Assume that the total cost function for a single firm in a purely competitive industry is given by following equation:
The percentage changes in quantity demanded divided by the percentage change in price.
Describe the effects of a price ceiling also a price floor on a market. As for what happens with pricing is different than equilibrium, a price Floor is Minimum wage.
Elucidate the difference among a monopoly and an oligopoly, the welfare effects of monopoly, cost advantages that create monopolies, government actions that create monopolies, and government actions that reduce market power.
The first step in comprising the value of this stock today, is to compute the value of the stock when it reaches constant growth in year.
A company has two plants with the following marginal cost functions: MC1 = 20 +2Q1, MC2 = 10 +5Q2 Where MC1 is marginal cost in 1st plant,
Describe why the understatement of inventory by 66,000 at then end of 2004 results in an understatement of equity by same amount in that year.
Describe the maximum insurance premium that the individual is prepared to pay.
60% of the youth between 18 and 30 in Detroit are unemployed, have not completed high school, are at various levels of functional illiteracy, without job skills,
You have the alternative of leasing an asset for $100,000 a year, with payments to be made at the end of each year of use. This lease cannot be cancelled.
From the regression output, estimate the demand function when income is $40,000 and price is $2 per gallon. Explain the result in terms of R-square, T-test, F-statistic, and signs of each X variables.
Illustrate what price-quantity combination maximizes your firm's profits. What price-quantity combination maximizes revenue.
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