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If a cartel like OPEC restricts the output of member nations to less than they are capable of producing with their existing levels of capital equipment, does the social cost of a monopoly increase? Explain.
The soft drink industry is a duopoly with differentiated products. Two firms, Coca-cola and Pepsi, compete through Cournot quantity-setting competition. Denote the quantity that Coca-cola and Pepsi produce by Q1 and Q2, respectively.
Labor demand for low skilled workers inthe U.S. is w=40-.15L where L is the number of workers (inmillions) and w is the hourly wage. There are 180 million domesticU.S. low-skilled workers who supply labor inelastically.
Explain how can the concepts of game theory be applied to buying through ecommerce or a retail store. Can you show me an illustration.
Can democracy survive if a majority of the citizenry pay little or nothing in taxes while benefiting directly from a higher level of government spending? Why or why not? Discuss.
Jane quit her job at IBM where she earned $50,000 a year. She cashed in $50,000 in corporate bonds that earned 10% interest annually to buy a mini-bus. Jane has decided to buy the mini-bus and set up a commuter service between Lincoln and Omaha.
A) explain hospital behavior in which the hospital administrators are maximizing their own utility functions by competing on the basis of quality B) explain the contrasting situation in which the doctors on the medical staff
Economist Milton believes that expectations of inflation change quickly in response to new policies, whereas economist James believes that expectations are very sluggish. Which economist is more likely to favor the proposed change in monetary polic..
Describe how the budget constraint of a household in a two-period model is affected by each of the following changes. In each case, do you think that the household is better off or worse off, or is the answer ambigous? If ambigous, what does the a..
A company operates plants in both the united states(where capital is relatively cheap and labor is relatively expensive) and Mexico(where labor is relatiely cheap and capital is relatively expensive). A. Why is it unlikely that the cost-minimizing ..
Elucidate do labor unions have a role to play today. How important is this role.
Indicate whether every of the following statements is true or false, and explain why. If a statement is false or true, please give a full explanation as to why that statement is correct or not.
Ten competitive saw mills currently supply lumber to a market whose demand q, depends on lumber price, p, as follows,
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