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The United States Postal Service has a monopoly on non-urgent First Class Mail and the exclusive right to put mail in private mailboxes. Pfizer Inc. makes LIPITOR, a prescription drug that lowers cholesterol. Cox Communications is the sole provider of cable television service in some parts of San Diego.
a. What are the substitutes, if any, for the goods and services described above?
b. What are the barriers to entry, if any, that protect these three firms from competition?
c. Which of these three firms, if any, is a legal monopoly? Explain your answer.
d. Which of these three firms are most likely to be able to profit from price discrimination and which are most likely to be able to sell their good or service for a single price?
How might a government solve the problem of overfishing by assigning property rights over areas of the sea around the local coastline to a single fisherman [hint: he can charge other fishermen a fee to be able to fish in "his" sea] Have property ri..
Explain how did Japanese central bank intervene the exchange rate between Yen and Dollar in foreign exchange markets and what was the government's justification for the intervention
The current Australian dollar exchange rate regime is a managed float exchange rate system with minimum government or central bank intervention. Explain with assistance of examples, three broad methods
Assume that the production technology of a self proclaimed infant industry allows economies of scale. Assume also that the same technology is available to foreign manufactures.
Factors hindering the flow of FDI into the country and the incentives offered by the country for attracting FDI
In 2008, the U.S. SEC eliminated the U.S. GAAP net income reconciliation requirement for foreign private issuers that adopt International Financial Reporting Standards. Do you agree with this decision?
An rise in the Federal minimum wage to $7.25 per hour from $5.15 a hour, suppose that the $7.25 is an effective price floor and that all other things remain steady,
Would this increase or reduce the gains to Canadian consumers? Use a graph to illustrate.
Country A is on the PPF. It decides to run a budget deficit of 100 billion. Both its potential and actual GDP is 800 billion. What will happen if country A decides to run this deficit? And why? Give a full explanation for this expected result.
In the twenty year period 1980-2000 virtually no private jobs were developed in the nations of the European Union as compared to 33 million new private sector jobs in the United States.
Still remaining within the Ricardian framework, Suppose that the Canada has one hundred units of labor available for production while Mexico has two hundred units of labor and both nations produce corn and wheat.
Assuming that American imports of wine are a small part of total world wine production, draw a graph for the U.S. market for wine under free trade. Now suppose that a tariff is place on the importation of wine into the United States to protect..
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