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An industry is composed of Firm 1, which controls 70 percent of the market, Firm 2 with 15 percent of the market, and Firm 3 with 5 percent of the market. About 20 firms of approximately equal size divide the remaining 10 percent of the market. Calculate the Herfindahl-Hirschman Index before and after the merger of Firm 2 and Firm 3 (assume that the combined market share after the merger is 20 percent). Would you view a merger of Firm 2 with Firm 3 as procompetitive or anticompetitive? Explain
Who or what do I blame for disparities in wealth and opportunity? Poor people? Wealthy people? The system? What do I think needs to be changed? Do I want to be a part of that change? If so, in what ways?
lets start by loading the data file included with this empirical exercise into gretl. the filename is
Corporation XYZ had decided to reduce the butterfat content of milk they are producing resulting to the milk to almost be only 2% milk. This in turn decreases the amount of butter and cream that the dairy farms can produce.
Derive the production plan that minimizes total cost. Solve by both backward and forward induction. Consider x1 and x2 as continuous variables, since any fraction of a ton may be produced in either month.
Typically, though not always, long-term interest rates are above short-term rates, as in the preceding example from 2004. In terms of the Fisher effect, what would that pattern say about expected inflation and/or the expected future real interest ..
The division's revenue for the year is $75 million. c. On March 31, you decide to stop throwing away $50 a month on convenience store nachos. You buy $200 worth of equipment, cornmeal, and cheese and make your own nachos for the rest of the year.
Assume that the demand for a commodity is represented by the equation P=10-0.2Qd and supply by the equation P=2+0.2Qs. where Qd and Qs are quantity demanded, and quantity supplied respectively, and P is the Price Use the equilibrium condition Qs=Q..
Consider the same dataset as in section 5.5. Repeat the analysis of section 5.5 using all observations rather than restricting the sample to ages between 21 and 65 years.
Which of the two types is most likely to be associated with a negative GDP gap? Which with a positive GDP gap, in which actual GDP exceeds potential GDP?
What is a strategic move? Why must strategic moves be hard to reverse in order to have strategic value?
Consider a market in which the market demand curve is given by P = 18 - X - Y, where X is Firm 1's output, and Y is Firm 2's output. Firm 1 has a marginal cost of 3, while Firm 2 has a marginal cost of 6.
Pat and Kris are roommates. They spend most of their time studying (of course), but some time for their favorite activities: making pizza and brewing root beer. Pat takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza.
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