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1. (Product Differentiation) One important way monopolistic competitors differentiate their products is by location. Re- view John Campbell's article,"Time to Shop:The Geography of Retailing," from the Federal Reserve Bank of Boston's Regional Review at https://www.bos.frb.org/ economic/nerr/rr1996/summer/rgrv96_3.htm. What locational strategies are retailers using? What does the theory of monopolistic competition predict about the success of such strategies in the short run and in the long run?
2. (OPEC) OPEC is the economist's favorite cartel to study. That is partly because it had such a spectacular short-run success and partly because oligopoly theory could be used to predict how OPEC pricing actually evolved.Take a look at the U.S. Department of Energy's OPEC Fact Sheet at https://www.eia.doe.gov/emeu/cabs/opec.html. What are some recent developments in petroleum pricing? How relevant are the factors listed in this chapter as affecting the difficulty of maintaining a cartel?
The lowest quintile of households in the income distribution receives about:
How does the adoption of a tighter monetary policy, like that conducted by Volcker Fed in the early 1980's affect output, inflation, and the real interest rate in the short run? In the Long run?
Predict what will happen to interest rates on a corporation's bonds if the federal government guarantees today that it will pay creditors if the corporation goes bankrupt in the future. What will happen to interest rates on Treasury securities?Analyz..
a identify two market structures in which product development and product differentiation is an important type of
The commodity presents itself to the economic agents
goods and services that are not sold in markets such as food produced and consumed at home and some household articles
Good profit by selling the homes and renting the shops.
What is the price elasticity of demand? Is demand elastic, unit-elastic, or inelastic and calculate the price elasticity of demand for logo-emblazoned shirts.
Do you favor a laissez-faire approach or government intervention and regulation with respect to monopoly What are the benefits of your favored approach, in terms of economic efficiency Is one approach always preferable, or should each monopoly mar..
Cypress River Landscape Supply is a large wholesale supplier of landscaping materials in Georgia.Cypress River’s sales vary seasonally.
The diagram below depicts the overnight rates targeted by the Bank of Canada in recent years. What was the central bank trying to accomplish by reducing the policy rate during the economic recession which lasted from the fourth quarter of 2008 to t..
Suppose that the income tax law exempt income of less than 8,000 from being taxed, taxes income between $8,000 and $20,000 at 25% rate, and taxes income greater than 20,00 at a 30% rate.Find the average tax rate and the marginal tax rate for someone ..
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