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1) (a) What is market concentration and how can you know whether a market is concentrated or not?
(b) What are the causes of market concentration?
(c) Are business mergers good or bad for the economy? Explain why?
2) Oligopolists are interdependent firms.
(a) What is mean by that? Explain "strategic behavior" and relate that to the "Kinked Demand" model of oligopoly.
(b) Explain the importance of mergers in oligopolistic markets. Is there much price competition in an oligopolistic market? Why or why not?
What does a contractionary gap imply about the actual rate of unemployment relative to the natural rate. What must happen to real and nominal wages in order to close a contractionary gap.
As the manager of monopoly, you face potential government regulation. Findout the monopoly price and output.
Recently, students in a marketing research class were interested in the driving behavior of students. Specifically, the marketing students were interested if exceeding the speed limit was related to social activity.
Assume the U.S. government determines that cigarette smoking creates social costs not reflected in the current price of cigarettes in the market
The company is risk neutral and so maximizes expected profits net of wages.
In order to reduce farm output, raise farm prices, and thus raise farm incomes (revenues), the government pays farmers to set aside a portion of their land from production. Using a graph, explain in terms of the elasticity of demand for farm produ..
The chance that the price of a college education will be the same 18 years from now as it is today seems remote. Assuming that the price will rise 3% per year, and that today's interest rate is 8 percent, what will your friend's investment need to..
A sample of 500 business professionals found that 30% chose an airline based on price. a) If the population proportion of all business professionals who select an airline based on price is 0.27, then what is the probability that we would find a s..
Draw the relavant isoquant map and isocost line if the cost of labor is $4 per work-hour and the cost of glass is $4 per pound and 90 light bulds are to be produced. What is the cost minimizing combination of glass and labor.
Explain why does the US steel industry want a tariff on imported steel. Show the US steel market with and without a tariff, showing graphically why they will like a tariff.
Select a policy or proposed environmental policy and write a one page essay analyzing what the policy's stated goal is, whether the policy is likely to achieve this goal, what the costs of implementing the policy wll be, who will bear these costs.
Compute the employment rate (i.e., number employed: population) in each year? How can employment rate may go up or down in the unemployment rate stays the same? How can employment rate go up if unemployment rate also goes up?
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