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1. "If the amount of product differentiation in a monopolistically competitive industry is very small, the outcome in that market will not be very different than if it were a perfectly competitive industry." Please explain.
2. Can a monopolistically competitive firm producing a good with lots of very close substitutes earn large positive profits in the long run? Please explain.
What are the three variables that can cause a shift in the aggregate demand curve?
How does Costco differ from other retailers? What is their business model? Who is the Costco target customer? Why? Why are the stores laid out the way they are? How is this different from other retailers? Why does Costco keep the price of its hot dog..
The _____ effect indicates that an individual’s income can buy more of all goods when the price of one good declines, everything else held constant.
What is the future worth of a series of even payment series of $1,674 made at the end of each 6-month period for 9 years at 6 % compounded semi-annually?
Why the focus in interest rates and unemployment and why can they keep the interest rates low? How do bond purchases tie in with the interest rates?
Suppose the GDP is $40 billion below its potential level. It is expected that next-period GDP will be $20 billion below potential and that two periods from now it will be back at its potential level. You are told that the multiplier for government sp..
The mall of the future will most likely be less about purchasing products than about exploring them in a physical setting. This means that retail environments will have to become places to build brand images, rather than just places to sell products...
Suppose the real side of an economy is characterized by: Y = 80K1/2 L1/2 K=100 and L= 100 G = 3000 T = 3000
Suppose Mike and Johnson produce two products- hamburgers and T-shirts. Mike produces 10 hamburgers or 3 T-shirts a day and Johnson produces 7 hamburgers or 4 T-shirts. Assuming they can devote time in making either hamburgers or T-shirts. Draw the p..
The markets for natural resources such as copper are constantly adjusting to changes in both supply and demand. How would your argument in part a change if, instead of the mine closures being unanticipated, it was actually easy to see the closures co..
Give two main reasons that Canadian prices for generic pharmaceuticals are higher than real acquisition prices and explain why these factors contribute to higher generic drug prices and any solution for this problem?
What would be the equilibrium price? What is the equilibrium quantity? Calculate the deadweight loss created by the tax.
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