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Discuss the economic effects of monopoly. Be sure to include the following:
1. Monopoly price compared to the price of a competitive firm
2. Efficiency of resource allocation
3. Monopoly and its impact on large-scale production and unit cost of production
Every time we have to make a choice we are faced with an opportunity cost. Using an example in your professional life, identify a situation where you were presented with a choice, the opportunity cost of the choice you made, and the process you used ..
In a two-period consumption model, a rise in the income of the second period would cause consumption in the first period to:
Illustrate what is the value of goods and services purchased by the government of Numidia.
Your employer decides to institute a new compensation scheme next year. They will pay you $25,000 no matter how much you work. However, since they employ nothing but workers who earn at least double the minimum wage, they will cut wages by 50%. Draw ..
Determine the equilibrium price and quantiy. Calculate consumer surplus. determine the new equilibrium. How have equilibrium price and quantiy changed? calculate new consumer surplus. Are consumers better off or worse off after the shock?
Consider the agency relationship in malpractice cases under a contingency fee system. The plaintiff (party that sues) typically pays his or her attorney about one-third of any monetary damages that are awarded (and nothing if the case is lost). Suppo..
Discuss how to close a recessionary gap. Discuss how to close an expansionary gap. What is the target and what happens if the policy "over-shoots?" What happens if a president tries to lower the unemployment to win the election? Did this ever happen?..
If a company's revenues and earnings are highly predictable, it's stock price will also be highly predictable. One advantage of the dividend valuation model is that it does not need a required rate of return. Marti is 31 years old and is saving for r..
Fixed costs exist only in:
Barbara's Body Shop is considering investing in a Kaizen training class. Training the entire workforce now incurs $100,000 in expenses. Improvement ideas will generate $50,000 annual income. Determine the after-tax cash flow for years 0 to 5, assumin..
The Aetna's decision is a bad business strategy (bad blood) or one based upon vengeance and intimidation? If it is the later, what should government do about it? Remember to use the invisible hand theory. Aetna Warned it Would Withdraw From Exchanges..
Suppose there are two inputs in the production function, labor and capital, and these two inputs are perfect substitutes. The existing technology permits one machine to do the work of three workers.
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