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Assume the fashion industry represents a monopolistically competitive industry, and explain what types of economies of scale exist that keep it from being a perfectly competitive industry. How is the opportunity to trade likely to change the structure of the fashion industry and the output of each designer in the industry?
What is the four-firm concentration ratio for this industry? ___74%_ b) What is the eight-firm concentration ratio for this industry? _____98% Suppose that the distribution of sales within an industry is as shown in the table.
Can a monopolistically competitive firm producing a good with lots of very close substitutes earn large positive profits in the long run? Please explain.
The products are being made by a machine that currently costs $100,000 and produces a 1000 units during its lifetime after which it needs to be replaced. The machine can be replaced by a larger one that produces proportionally larger number of uni..
Calculate the Average Propensity to Consume for two households
Economists sometimes say that protectionism is the "second-best" choice for dealing with any particular problem.
The only difference is that now when two agents agree on (50, 50), each gets 20 as a bonus. What are the Pareto optimal allocations. (An allocation specifies how much each agent ultimately gets.) What the bonus associated with (50, 50) is 60 each.
In terms of length and magnitude, which two recessions have been the most severe?
For ATC and AVC, plot the points on the integer: for example, the ATC of producing one tablecloth is 80, so you should start your ATC curve by placing a green triangle at the point (1, 80). For MC, plot the points between integers.
Assume autonomous real investment is $30, autonomous real government spending is $30, and autonomous real net exports is -$20. Compute Aggregate Expenditures at each level of real GDP. What is the value of equilibrium real GDP
Suppose that the signal is no longer available. Which kinds of job will be filled by which types of workers, and at what wages? Who gains and who loses?
A bank has $120 million in total assets, which are composed of reserves, loans, and securities. its only liabilities are $120 million in transactions deposits. The bank exactly satisfies its reserve requirement, and its total reserves equal $6 mil..
If the CPI was 110 last year and is 121 this year, what is this year's rate of inflation In contrast, suppose that the CPI was 110 last year and is 108 this year. What is this year's rate of inflation What term do economists use to describe this..
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