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The US cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under the proposed settlement, cigarette companies will make fixed annual payments to the government based on their historic market shares. Suppose a manufacturer estimates its marginal cost at $1.00 per pack, its own price elasticity at -2, and sets its price at $2.00. That company's settlement obligations are expected to raise its average total cost per pack by about $.60. What effect with this have on its optimal price?
emission are the product of these numbers emissions\energy use, use/output, output/capita, numbers of people. in countries like the united states energy use by unit of output decreases over time. what effects over time might you expect for these o..
The U.S Postal Service (USPS) is a monopoly because the federal government has blocked entry into the market for delivering first-class mail. Is the USPS also a natural monopoly How can we tell what would happen if the law preventing competition ..
Petroleum products are in limited supply, what do you recommend the United States government should do to prepare for a shortage of gasoline? Describe your answer.
When the British government tripled university fees for foreign students in Great Britain, about one-half of them left to study in other countries." What is the implied price elasticity of demand by foreigners for a British education is (in absolu..
Based on what you receive as the results of free trade contracts such as NAFTA, would you suggest that President Obama continue on the path of entering into more free trade contracts with additional nations
Suppose that the spot value of the British pound is $1.55, the annualized thirty day sterling interest rate is 10 percent, the annualized 30-day U.S. interest rate is 8.5 percent,
Suppose that government imposed price ceiling on gasoline in order to prevent values from getting too high. Determine the economic implications of this action in the gasoline markets?
Commercial real estate prices and rental rates suffered substantial declines in the past year (Newsweek, July 27, 2009). These declines were particularly severe in Asia; annual lease rates in Tokyo, Hong Kong, and Singapore declined by 40% or more..
briefly explain why the prices of Short Term US treasury securities are still high enough to keep the interest low enough despite the fact that the US Bond rating has been downgraded from AAA status to AA+ by S&P in July, 2011.
The U.S. government imposes a price floor for U.S. sugar that isabove the market clearing price. Illustrate the U.S. sugarmarket with the price floor in place. Discuss the effects of the price floor on conditions in the market for sugar in the Uni..
Which political system describes best the governance system of the EU? Is the governance system of the EU democratic? Why ‘yes', or why ‘not'?
The U.S. economy is in a recession and the IS-LM suggests we are in a liquidity trap. a) Illustrate the situation using the AD-AS and IS-LM diagrams. b) Explain what a liquidity trap.
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