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There are 2 firms consider here from 2 different industries. A firm in industry A has MC of production = $100 and they know from historical experience that their Lerner index is 0.3. A firm in industry B has MC of production = $35 and they know from historical experience that their Lerner index fis 0.55. (a) Determine the optimal price that both firms should be charging. (b) Articulate which firm is more likely to earn excess profits in the long run and explain why this is your answer using your understanding of the connection between the Lerner index and industry concentration.
What does it mean when asked; what are some considerations to remember given the different roles and people in the audience.
Explain why a nation that imposes tariffs on imported goods may find its welfare improving should the tariff result in a favourable shift in the terms of trade.
Explain In Canada Full-time permanent ---full time temporary----part time permanent---part time temporary---- Why is diagram may only apply to certain people And also considering race and age.
If the federal government chooses to increase government expenditures explain the three methods of financing the expenditures in terms of: which is the most expansionary, what are the negative effects of each, and which is the most inflationary.
Draw, side by side, a diagram of the market for money and the aggregate supply/ aggregate demand to illustrate how inflation is created. Initiate the process in the AS-AD diagram with negative supply shock that the central bank decides to "accommodat..
If these are the only two firms supplying gadgets, elucidate the elasticity of supply in the market for gadgets.
Some people (e.g., Hayek) argue that decentralization of economic decisions in the economy leads to an efficient resource allocation. What differences exist within the firm that make the link between de- centralization and efficiency less clear?
Government A decides it wants to eliminate poverty and unemployment by immediately issuing 50,000 dollars/yr to all unemployed citizens. All said citizens receiving the 50,000 per year under this government are thereby not considered unemployed. Expl..
A hedge fund currently has assets of $500 million. The annual fee structure of this fund consists of a fixed fee of 1% of portfolio assets plus a 20% incentive fee. Compute the fee that the manager will earn, in dollars, if the return on the fund in ..
If you plan to have $4,000,000 when you retire, how long will you be able to withdraw $500,000 per year if the account earns interest at a rate of 6% per year? USE INTERPOLATION. Please show all work.
A 10 year $20,000 savings bond with a coupon rate of 8% payable quarterly has what present worth if the purchaser anticipates a 10% quarterly rate of return?
Compare and contrast economic development strategies based on import substitutions versus export promotion.
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