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indicate whether you agree with the following statements in italics, and explain your answer:
(a) Parallel shifts in the demand function can be used to identify the degree of market power being exercised in a market.
(B) Suppose that most of the city's consumption of a good is supplied by production within the city, and that most local production is sold to local consumers. We can conclude that this city is a geographic antitrust market for the good in question
(c) Contracts between a firm and its customers can be used to facilitate collusion
(d) Suppose that in a particular country, price fixing is not subject to criminal law; instead, if a cartel is caught, they are simply forced to dissolve the cartel and return to non-cooperative behavior. Such a policy cannot deter collusion because it does not involve a penalty (fines or imprisonment) for the cartel members.
A Firm has total cost function given by following: What is the Total fixed cost when Q = 100? And Average fixed Cost when Q=100?
Insurance companies must provide insurance to drivers who may take risks that go unreported because they don't wreck or get ticketed (or if they do wreck or get ticketed, it goes unreported to the insurance company).
"Since the indirect utility function, under standard assumptions, is quasi-convex in prices, randomization over equilibrium prices can be Pareto improving even if fundamentals are not stochastic." Assess this claim and its implications or compatibi..
If the product price is $4 per unit and the price of the factor of production is $80 per unit, the profit-maximizing quantity of the factor is____ unit(s).
As a manager of a financial considering business you have two financial planners, Phil and Francis. In an hour, Phil can make either one financial statement or answer ten phone calls,
Characterize this as an example of a positive or a negative externality and the efficient level of a negative externality is always a positive amount.
In your paper, compare and contrast how technology has helped build your business and personal relationships versus how technology has weakened those relationships.5.What can you and others do to use technology (including social media) to reduce a..
Suppose the price of labor increases to $2 per unit. What effect will this have on output per unit of labor and is this plant subject to decreasing returns to scale? Why or why not?
Mention five ways you are affected on a daily basis by government intervention in the market. For what reason might government be involved? Is that reason justified?
Suppose the bottle water industry is competitive. If a bottle of water supplied by the typical firm has an ATC of 20 cents and the market price if 30 cents.
how much interest is payable each year on a loan of $2000 if the interest rate is 10% per year when half of the loan principal will be repaid as a lump sum at the ed of four years and the other half will be repaid in one lump-sum amount at the end..
What level of output should this firm produce in order to maximize profit or minimize losses - and how many firms in total will there be in this market?
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