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Earlier this year the Federal Government USA approved the merger between Sirius and XM satellite radio companies. The approval process was very lengthy and extremely costly. Millions of dollars were spent lobbying for or against the merger.
1. What, if any, shortcomings arise from a monopoly pricing strategy (efficiency and consumer surplus)?
2. Are there any circumstances under which these shortcomings are mitigated?
3. Did the government impose any requirements to ensure that the merged company is not able to exercise monopoly power in the satellite radio market? If so, what are those conditions and do you think they will work?
Find the equation of the new demand curve for Chevrolets. What is the relationship between D C and D' C ? What explains this relationship?
The manager of a national retailing outlet recently hired an economist to estimate the firm's production function. Based on the economist's report, the manager now knows that the firm's production function
By how much will each firm reduce its SO2 output? Which firm will buy permits, which firm will sell them, and how many permits will be exchanged?
Suppose instead that the government wishes to impose a value tax of $0.25 on each dollar of the consumer's expenditure on good 1.Show the effect of imposing this tax in a graph containing before and after budget lines.
Suppose that a firm is a perfectly competitive industry has the following total cost schedule: Compute a marginal cost and average cost schedule for this firm.
Compute the equilibrium interest rate. Compute the amount of investment demand, private saving, and national saving at the equilibrium interest rate.
The advent of the one man bus involved more capital equipment: an automatically operated coin box and door control device - to name two of the capital goods that replaced the conductor."
Compute the monopoly equilibrium. Compute the consumer surplus. Assume this firm practices two-parts tariffs, Compute the optimal output.
How many "spells" of unemployment occur each year in this economy? What percentage of the "spells" are only one month long?
Budweiser, Miller and Coors who together produce 80% of all beer consumed in the US, each spend well over $250 million a year on television advertising campaigns, promoting their beer brands.
Obtain the market clearing price and quantity. Under the assumption of profit and maximization , how much output should the representative firm produce?
As the manager of monopoly, you face potential government regulation. Findout the monopoly price and output.
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