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a. Company A and B form a cartel to market soft drinks. Calculate the cartel profit maximizing price quantity combination
b. Calculate the profit maximizing output produced by each company
Suppose the federal government needs to balance the budget, which means that when the government spending increases, taxes must increase equally. In this case, government spending multiplier is called the balanced-budget multiplier, defined as the..
Assume the government imposes a price ceiling of $13.50 on the drug in question (Daraprim). What are the unintended consequences of this policy?
Would your answer change if firms A and B had somewhat greater fixed costs of production than firms C and D?
Draw Iron Mans budget constraint and optimal consumption bundles before and after the policy change. What would be the explanation for his increase in hours worked as a result of the policy change in terms of income and substitution effects?
Requires complete understanding of interactions between production and profit maximization. Be careful with the IF-THEN statement. If a competitive firm minimizes its costs of production subject to output, it then maximizes economic profit. True o..
part a use the first order conditions for profit maximisation to show that a monopolist will never produce on the
Show how a monopoly firm (industry) behaves in short run (using any practical example: emphasize on output, price and average cost).
What is Zynga's profit-maximizing number of games to be published and what is the total amount of the externality at Zynga's profit-maximizing quantity?
If the actual values for GDP of 2000 and 2005 are $9,817 and $12,433.9 billion, find the estimation error of the model based on MAPE.
Turn on a tv to watch news and learn that at resort island has been hit by a hurricane. Several big hotels and thousands of houses have been destroyed. Only a few hundred construction workers live on the island. What are two ways that supply and dem..
Write down a paragraph explaining how the Hernandez Corp. finds the least cost combination of inputs for producing the given rate of output.
Explain the difference between active and passive monetary policy.
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