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One of these firms is considering opening up a new product line, in a market in which it would be the only firm. So, adjusting the notation to now capture demand in the monopolistically competitive industry with Q1(p1) = 140 − p1, and the demand it would face in the new second market with Q2(p2) = 100 − 2p2, what should the firm do? Assume that the firm faces costs equal to C(q1, q2) = 25 + 40q1 + 0.5q2 + q1q2.
What are some of the situations that can give rise to monopolies? Research the industrial revolution and the Robber Barons (such as Carnegie and Rockefeller), of that era and comment on how they were able to create their monopolies. How are we able t..
Give two examples of externalities connected with consumption and saving that can be used in arguing for policies aimed at increasing U.S. personal saving. Explain why they can be used that way. Explain what a traditional I.R.A. is. Explain how it in..
Explain the difference between adverse selections also moral hazard in insurance marketplaces.
Under which circumstances do you think an employee should be monitored? Based on the circumstances you have identified, how often should the employee be monitored?
Describe some forms of government spending that represent consumption ad some forms that represent investment.
why Marx calls it an ‘absurd tautology' that value of labour is determined by that labour. How can a tautology be absurd.
Suppose that each unit of product A requires 4 workers and 1 unit of capital to produce, whereas each unit of product B requires 5 units of capital and 2 workers and that it is the case irrespective of prices (no factor substitution). What does this ..
A monopoly is a market in which one firm sells a good or service that has no close substitutes and a barrier blocks the entry of new firms. In addition, as noted in “Are Microsoft’s Prices Too High?", Microsoft’s prices are too high in the sense that..
You need both equations and clearly labeled graphs (separate graphs for each question) to answer the following questions. Assume that b=1/2 and that initially the real interest rate is equal to the marginal product of capital at 3%. How much can we e..
Describe the considerations that ABC Airline must explore as it considers entering into an international contractual arrangement with XYZ, Inc. which is an airline part manufacturer located in Europe.
In economics, inflation is considered as a tax. There are also various costs of inflation. What is the inflation tax, and how might it explain the creation of inflation by a central bank? Explain how inflation affects savings and investment.
Illustrate why might Fourth of July fireworks be considered a public good. who should pay for them. what about airport security.
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