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A firm has $1,700,000 in sales, a Lerner index of 0.56, and a marginal cost of $50, and competes against 800 other firms in its relevant market. Instruction: Round your answers to 2 decimal places. a. What price does this firm charge its customers?
Suppose that for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Draw the isoquants (on a graph with backhoe, “K”, and backhoe operators, “E”..
Illustrate what are the values of the tax-adjusted utilize cost of capital, the desired future capital stock also the desired level of investment
Suppose two firms compete by selecting quantities q1 and q2, respectively, with the market price given by p = 1000 – 3q1 -3q2. Firm 1 (the incumbent) is already in the market. Firm 2 (the potential entrant) must decide whether or not to enter, and if..
Suppose a manufacturer is a monopoly. This manufacturer produces a good at MC = 4 and sells it to a retailer. The manufacturer has no fixed costs. The retailer is also a monopoly, and it sells the good bought from the manufacturer to consumers.
International trade has pros and cons. Economists generally support free trade. International trade has played a significant part in promoting economic development and technology transfer among countries.
Illustrate what does this theory predict about the term structure of interest rates in terms of how the yield of long term bonds are related to yields on a sequence of 1 year bonds.
Bob’s Breakfast, a perfectly competitive restaurant, sells its Breakfast Special (the only item on the menu) for $5.00. The costs of waiters, cooks, power, food, etc. average out to $3.95 per meal. The costs of the lease, insurance and other such exp..
The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.
What are the four market types? Give an illustration of each. From a social standpoint, what is the problem with monopoly? Discuss this using an example for illustration.
Why did most communities in the early days of e-commerce fail? What factors enable some online social networks to prosper today?
Illustrate how do you think this would affect household spending on goods and services.
Suppose that the adult population is 152 million, the number of unemployed is 19 million and the labor force participation rate 63%. What is the unemployment rate?
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