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How do firms establish barriers to entry?
Discuss ways firms establish barriers to entry and explain how they benefit firms but not consumers. Given an example of a law or regulation that limits the ability of firms to establish barriers to entry and an example of a law or regulation that helps firms establish barriers to entry.
In the text we mentioned how Levi Strauss price discriminates between the European and American markets. This question is designed to help you analyze this situation.
Shelly's preferences for consumption and leisure can be expressed as. This utility function implies that shelly's marginal utility of leisure is C-200 and her marginal utility of consumption is L-80.
Two identical firms face linear demand. Market demand is given by P=30-Q. Compare graphically consumer and producer surplus in Cournot and Stakelberg equilibria to perfect competition.
Explain how do high inflation rates affect the exchange rate of a country in the short and the long run.
Suppose that because of the ongoing financial turmoil banks become more prudent: that is, other things equal, banks want to hold more excess reserves and make fewer loans.
Discuss the short-run movement toward equilibrium in the currency markets in a flexible exchange system.
If the MPC = 0.94, C 0 = 45, I = 150, G = 125, T = 75, X = 50 & IM = 60: Write out the consumption function. Compute the simple multiplier.
Explain how the aggregate expenditure function shifts in response to the changes in each of the following variables:
In which of the following circumstances is expansionary fiscal policy more likely to lead to a short-run increase in investment? Explain?
Select a U.S. multinational company. In terms of currency denomination, discuss how the firm prices its revenues and costs.
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
Elucidate whether each of the subsiquent would make fiscal policy more effective or less effective
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