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The U.S. Postal Service is a monopoly provider of first-class mail delivery (other companies such as UPS and FedEx can deliver packages, but not first-class mail). Do you think this is an example of a cost-based monopoly, or is there some other explanation?
Acura and Volvo offer warranties on the automibiles, where wA is the number of years of an Acura warranty and w - V is the number of years of a Volvo waranty. The revenue for Firm i, i = A for Acura and V for Volvo is TRi=27,000wi / wA +wV. The fi..
What factors affect how quickly U.S. businesses will actually increase their consumption of renewable fuels versus other energy sources?
Consider the "Beauty Contest" or guessing game experiment. Everybody picks an integer between 0 and 100 inclusive, and the winner is the person who picks closest to 2/3 of the average pick. a) What picks are ruled out by the idea of one level of it..
Use the concepts of marginal cost and marginal revenue to derive an optimal capital budget for Company X, which has identified 7 possible investment projects and determined its cost of capital.
Ilkka’s income is $120 and he spends it on two goods, X and Y. His utility function is U = XY. Both X and Y sells for $2 per unit.
Impact of Government Regulation
One of the most important skills to learn in managerial economics is the ability to identify a good business. Discuss at least four characteristics of a good business.
Illustrtae what is the Nash equilibrium without an enforceable contract. Explain why this is the likely outcome.
How much does the gross price increase in each market
A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Female shoppers generally value microwaves more than men and attribute greater value t..
What is the equilibrium level of income and derive the savings function and find the level of savings in this economy
Using the perfectly competitive labor demand and labor supply model, what would happen, all else equal, to the real wage and the number of workers in each of the cases below: A. There is an increase in the amount of physical capital as a result of po..
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