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Which of the following is a characteristic of the monopolistic competition market structure?
A) Many firms and a homogeneous product. B) Few firms and similar products. C) Few firms and differentiated products. D) Many firms and differentiated products.
Suppose that Glitter Gulch, a gold mining firm, increased its sales revenues on newly mined gold from $120 million to $240 million between one year and the next. Assuming that the price of gold increased by 100 percent over the same period, by what n..
How does price discrimination help cover fixed costs?
Will each of the following transactions be included in GDP for the United States? Explain why or why not
Think about how you can check whether marginal benefit equals marginal cost for each of your household’s activities. By what methods are your households scarce resources allocated? Identify those allocated by the market price; by command; by first-co..
A firm produces output using two factors of production according to technology f(x1, x2) = (x1^1/2)(x2^1/4). The price of output is 4. Factors 1 and 2 cost to the firm w1 and w2 per unit, respectively. (i) Write an expression for the firm’s profit. (..
A price taking firm chooses its inputs to maximize short-run profits. Its Cobb-Douglass production function has the following form: q(L, K) = L^(1/2) K ^(1/3). Set up the profit function in terms of labor only. Another price taking firm chooses its i..
Forward Exchange Rates: Use the information
Monetary Policy Each of the following events will have one of the effects given below. Identify the correct effect by letter. Some answers may be used more than once and some may never be used. The level of aggregate real income (real GDP) decreases...
Explain and graphically illustrate the effects of the tax cut on aggregate output, consumption, employment and the real wage.
Consider a rancher-farmer economy. Assume that the rancher has no choice over how many cows to raise but either the farmer or the rancher (or both) can build a fence to eliminate the crop damage of $150. However, the costs of installing the fence are..
Can you recognize from the graph the period for which Canada was on affixed x-rate regime with the US dollar and the UK pound? What was this period.
FACTS Lydia Gonzalez, 5 8 (plaintiff), worked as a reporter at El Nuevo Dia, a Puerto Rico newspaper. Her supervisor, Maria Luisa Ferre, often said that Ms. Gonzalez’s demeanor and couture were “[o]ut of style” and “colorless,” and her coiffure was “..
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