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Suppose that P = 400 - 20Q and that there are 3 firms, each with a marginal cost of 30. Suppose that firms 2 and 3 merge. The merger allows the combined firm to lower its marginal cost to 20. Does the merger lead to a higher or a lower cournot equilibrium price?
When the CR = 80%, is the market efficient when the market behavior follows the price leadership model?
If the ce If the of Pepsi-Cola increases from 40 cents to 50 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then, (according to the arc price elasticity formula,the same formula used in class).
Besides addressing the issue of externalities, what other important and beneficial roles does the government play in a market economy?
Suppose you are the manager of a California winery. How would you expect the following events to affect the price you receive for a bottle of wine?
The Fed sells bonds in the open market during a period of low unemployment and no excess industrial capacity. The economy is far below capacity and the government lowers taxes
You heard that you are being transferred to California where housing is 50% more expensive. In negotiating a new salary, your objective is to keep your real income constant.
1. Why might federal spending on roads, waterways, or national security be less subject to direct expenditure off sets than spending on health care or education 2.What might account for the fact that estimates of effect time lags for fiscal p..
When a government wants to increase tax revenue, they will often increase the sales tax on gasoline. Using price elasticity of demand, explain why the tax would be placed on gasoline rather than, say, yachts. What might be the long run effect of r..
Make a research on the elasticity of beef and eggs in regards to price changes and explain how do supply, demand, and price controls interact to affect equilibrium price of eggs?
Monopoly manager has the demand and cost functiones as P=200-2Q and C(q)=2000+3Q2
What type of unemployment is the quote referring to? What may happen if workers become discouraged?
Use supply or demand graphs to examine shifts in supply and demand and resulting changes in market equilibrium in the condition below.
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