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Q1. The banking market in Athens, Ohio currently has four banks with market shares of 60 percent 20 percent, 15 percent and 5 percent. The two smallest banks have proposed merging. Under the standard merger guidelines of the Federal Reserve and the Justice Department, is the merger likely to be approved? Why or why not? In your answer, be as quantitative as possible.
Q2. Do you think these firms would welcome congressional legislation which restricted the amount that any one firm could spend on advertising to $1 million yearly, and thereby allowed them all to drastically reduce their costs without fear of losing ground to each other? Are wireless telephone companies in the US market conducting the same practice of non-price competition? Explain your answer in both cases.
What is the average fixed cost of producing 4 units of output and What is the marginal cost of producing the third unit of output.
The short-run and long-run effects of this change for the levels of per-capita output, and the growth rates of (total) output and per-capita output.
A Fenway park, home of the Boston Red Sox, seating is limited to 39.000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue.
Summarize in words the predictions and limitations of the theoretical framework developed for the first exam: that is the predictions for the effect of capital accumulation.
Watch the video titled Fear the Boom and Bust. Using the tools of macroeconomics, identify the primary difference between the two philosophies.
A physician's office expenses increase 10 percent so she decides to raise the price of office visits by that much. Assuming the demand curve for office visits does not shift, what will happen to the total number of office visits and practice reven..
Now suppose your utility functioin is U= (square root)Wealth. What is the maximum you will pay for the bike check-in now.
Explain how the short-run Phillips curve, the long-run Phillips curve, the short-run aggregate supply curve, the long-run aggregate supply curve, and the natural rate hypothesis are all related.
Which of the variables above is NOT statistically significant at the 0.05 level.
What is the social optimum quantity and price. Calculate the total surplus in the market equilibrium, at the social optimum and with the tax.
For each level of output except zero output, calculate the average variable cost, average total cost and average fixed cost.
The bank and pays interest at the market interest rate of 4 percent. Is it correct to say that the cost to Mary of living in her house is less than the cost to John.
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