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After AT&T was split up by government litigation into a number of different entities (i.e., local phone companies, a long-distance phone company and a phone equipment manufacturer), what was the result on competition in the phone market?
Assuming: Price is $80 demand and total supply is 32, OPEC supply is 13 and Non-OPEC supply is 19. Short run world demand Price elasticity is -0.5, long run is -0.30. The short run OPEC price elasticity is .05 and the long run is 0.30. What is the lo..
If total product is decreasing, marginal product is
Describe a situation that would call for applying one or more of any (dynamic economic model/legit model/random walk model/spurious regression/co integrated time series/tests of stationary). Explain your rationale for applying the model you chose.
The demand curve for rutabagas is a straight line with slope 23 and the supply curve is a straight line with slope 2. Suppose that a new tax of $3 per sack of rutabagas is introduced.
Excludability matters because it: Any cost that is imposed without compensation on someone other than the person who caused it is called: Correcting a market with an externality through taxation is _________ correcting it through a quota. Calculate t..
The average avoidable cost for a fringe firm is AAC(q) = 20/q + 5q. The marginal cost function for a fringe firm is MC = 10q . There are 10 fringe firms. The marginal cost of the dominant firm is 2 and the demand function is Q = 100 - P. What is the ..
You and your neighbor meet at the University Inn. Your neighbor suggests that the trouble is too much government spending in the economy. Outline how this may be correct, in terms of fiscal policy. A Wall Street Journal writer enters the argument and..
Draw a supply and demand diagram for the Corn market showing this equilibrium. Draw a diagram for a typical firm in its initial long run equilibrium, showing its Marginal Cost, Average Total Cost, and Long Run Average Cost curves. Are any profits bei..
Determine the balance at the end of year 5 if a new account is opened with $500 and periodic payments of $200 are deposited into it for the 5 years. The account has a 5% NAR with the following conditions.
What would be true of entitlement spending if the percentage of taxes allocated to discretionary spending rose to 100 percent and the federal budget was balanced? How would entitlement spending be funded if tax revenues just covered discretionary spe..
For the CES utility function U(x, z)= x^p + z^p. Derive expressions for the optimal levels of good x and good z as functions of the price of good x, z,pz and income, Y. For simplicity assume that the price of good z is normalized to be 1. What is the..
If you have four years child by the time he/she turns eighteen and you need a 100,000 for them and the interest rate is 4%. How much you need to save now? What is the present value? Andrew has $500 he put the side $500 semi annual and he planned to k..
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