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A fundamental characteristic of oligopolies is the tendency for them to follow price leadership and to act in harmony in the setting of prices, while monopolistic competitors will find it possible to earn only normal profits in the long run-this is because entry into the field by rivals is relatively easy. In this discussion, answer the following:
What examples of these characteristics are you aware of?
Are you aware of any real-world situations where these principles are violated?
How can you explain the behaviors at variance to established economic theory?
You are the manager of a perfectly competitive firm selling a product. Your business is making a loss because total revenue is less than total costs. What would you do--shut down or continue to operate.
Many economists would argue that private companies are likely to be more efficient than the government at operating airlines. Yet many economists would also argue that there is a valid reason for government to regulate the safety of those same air..
Some states have had laws restricting the sale of most goods on Sunday.oppose such laws because they find Sunday afternoon a convenient time to shop.
How has the housing market crash affected urban sprawl and what do you think is the greatest problem facing the suburbs, especially if it is a growing area?
what is the concentration ratio for the industry x and y. (number of firm) ----(industry x) ------ (industry y) (1) -----------------------8,750-------- --------1,750 (2) -----------------------7,500---------------- 1,725
What are the monopolist's profit-maximizing output and price and what is the resulting deadweight loss relative to the competitive outcome?
Calculate the market demand for strawberries and plot it on a graph. On the same graph plot the supply function using the data in column A. What are the equilibrium price and equilibrium quantity?
Choose a United States multinational company. In terms of currency denomination, discuss how the company values its revenues and costs.
What are governments fiscal policy options for moving the economy out of a recession Speculate on which of these fiscal options might be favored by a person who wants to preserve the size of government and a person who thinks the public sector is ..
What is the Marginal Cost? What is the Average Cost? What is the optimal production level where production costs are the lowest per unit?
Evaluate this statement: " profit-maximizing firms lack an incentive to provide job safety, and consequently, the federal government must intervene legislatively to protect workers against unsafe working conditions that will surely result."
Determine the optimal size of the shopping center (to the nearest 100 square meters) based on existing estimates of the demand for retail space.
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