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Suppose the Federal Reserve is considering the applications of four different banks to merge with other banks. Given the level of the new HHI and the change in the HHI shown below, in which case could the Fed challenge the merger? New HHI = 1,900; change in HHI = 150 New HHI = 1,500; change in HHI = 400 New HHI = 1,200; change in HHI = 700 New HHI = 1,850; change in HHI = 250
Should antitrust laws (or other regulatory policies) attempt to eliminate all forms of imperfect competition? Why or why not?
A few questions in this problem set are based on the comments made by James Love to Congress regarding antitrust policy and the Petroleum industry. These are found at the end of the module on Antitrust Policy. Why is less concentration a problem for ..
Prove that giffen goods have a positively sloped demand curve and a backward bending price consumption curve.
Draw, side by side, a diagram of the market for money and the aggregate supply/ aggregate demand to illustrate how inflation is created. Initiate the process in the AS-AD diagram with negative supply shock that the central bank decides to "accommodat..
To what extent is to greek proverb "Happiness is the full utilization of your capacities along lines of excellence." similar and different from the traditional definition of economics.
Use your knowledge of the problems associated with asymmetric information to elucidate why insurance companies often include deductibles as part of their policies.
the economy is operating beyond the full employment output level thus producing rapid rise in prices of goods and
Describe a situation in which autocorrelation might be present and which of the three methods of detecting autocorrelation you would leverage. Explain your rationale. Describe what remedial measure you would take to address autocorrelation if it were..
Is there a property rights policy that would address the issue of climate change? If so, describe it and explain why it would work. If not, explain why not.
We would like to estimate the need for physicians in a country. What approach would you follow to estimate the need? Briefly describe the method you are proposing (describe one method only) and discuss some potential limitations of the approach.
You are the manager of Copies Are Us. The only other copy store in town, the Carbon Copy, recently got bids on adding a color copier. You must decide whether to obtain a color copier, but you can base decision on what your rival does.
How big would that budget have to be before he would spend a dollar buying a first cup of coffee.
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