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1- What will happen if economic profits are greater than 0 in perfect competition? What about if profits are greater than zero for a monopoly? Be certain to explain why there is a difference by incorporating the characteristics of each market structure.
2- What does MR=MC tell us? Where do firms produce at that point? What if MR were greater than MC, what would firms do? What if MR is less than MC, what would firms do? Be certain to explain your answer.
3- What are some of the barriers to entry in monopoly (reasons why monopolies can exist)?Be certain to explain your answer.
4- Why do monopolistic competitive firms tend to advertise so much? Do you think it is waste of resources? What behavior do oligopoly firms tend to engage in? Be certain to explain the reasoning behind the behavior.
o Determine whether the change is an increase or a decrease. o Show the change in demand and/or supply on the graph of the initial equilibrium. (You will have one graph for each event.) Identify the result on the equilibrium price and quantity of den..
An increase in the price of an input leads to higher costs and therefore less profit at the original quantity produced; therefore, some firms will increase the quantity they produce in order to increase revenues.
Wage indexation is a good mechanism to fight inflation induced by either demand or supply shocks. With high responsiveness of investment to interest rate and low sensitivity of speculative money demand to interest rate, the monetary policy is more ef..
How do you propose to enact these standards when you are an administrator? What is the regulation or statute for? Who does the act protect? What are the consequences for violating it? Why are laws like this good for protection? How do you propose..
How the Balance Sheet for Bank Z would look like after it loans out its Money to Mr. Chansa and suppose Mr. Chansa Deposit his Money into Bank-B, How would the T- Balance sheet look like for Bank- B
discuss the difference between the european monetary system and eu adoption of a single currency. what factors
part-1assume preferences can be represented by the following utility function ux1 x2 3 ln x1 ln x2a.nbsp is the
suppose small country has 20 civilian residents aged at least 16. 4 are retired 4 are students 2 work as clerks the two
Airbus and Boeing compete in the market for big airplanes. Presume each produce only one type of airplane and the airplanes are identical. What will be Boeing’s profit if it decides first?
taxicab fares in most cities are regulated. several years ago taxicab drivers in boston obtained permission to raise
in calculating the incremental cost of a particular project how would you treat the possible future costs of a lawsuit
Analyze the following scenario: Meals for the Homeless buys 30,000 large cans of green beans each year. The cost of each can of beans is $4.
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