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If all firms in perfect competition have the same average revenue and pay the same price for inputs such as labor and materials, why do they not all have the same profit?
What is a natural monopoly? Why is government justified in regulating a natural monopoly?
Assume that 3-firms which produce a homogeneous output will compete by choosing prices and the market price P is the minimum of the 3-prices that are chosen.
Explain what does the transaction of a buyer and seller directly affect a third party. Is the effect a negative or positive externality.
UBS does not respond to its competition explain how much of its sales is it going to lose.
a. Explain how asymmetric information about a hidden action or a hidden characteristic can lead to moral hazard or adverse selection. b. Discuss a few tactics that managers can use to overcome these problems.
How would use the principle of marginal analysis to make a decision.deciding how many days to wait before doing your laundry, deciding how many bags of chips to eat or else.
If consumers had been given more time to adjust to price changes, would you expect the price elasticity of demand to be more inelastic or more elastic? Explain. h. Consider the price elasticity of demand for the category flights on all airlines be..
The firm is considering a movement of the plant to Shenzen, China where labour is cheaper. The same mathematical relationship between inputs and outputs will hold.
Please detail the possibilities of using fiscal policy to stimulate economic activity in Denmark in a situation of economic stagnation among the most important trading partners.
Among which of these methods of encouraging growth would you suggest to a newly industrialized economy.
Find out the income elasticity of demand. Elucidate whether gas is a normal or inferior product.
Nonetheless, Omega earns zero economic profits because numerous competitors have entered the market over the last few years. Based on this information, does Omega operate in a perfectly competitive market Why or why not
A South America nation with fixed exchange rate system has close economic ties with the USA symbolized by extensive trade.
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