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1. How is monopolistic competition like competitive markets? How is monopolistic competition like monopoly?
2. What is an oligopoly? Provide an example of an oligopolistic industry not found in the chapter.
A woman made 10 annual end-of-year purchases of $1000 worth of common stock. The stock paid no dividends. Then for 4 years she held the stock. At the end of the 4 years she sold all the stock for $28,000.
A firm has decided through regression analysis that its sales (S) are a function of the amount of advertising (measured in units) in two different media, television (x) and magazines (y): S(x, y) = 100 - x^2 + 30x - y^2 + 40y (a) Find the level o..
What is the likely post-merger bargaining outcome?
Explain in words how and why the multiplier G and the interest sensitivity of aggregate demand affect the slope of the IS curve.
Deficit reduction as a prisoner's dilemma game Suppose there is a budget deficit. It can be reduced by cutting military spending, by cutting welfare programs, or by cutting both. The Democrats have to decide whether to support cuts in welfare prog..
a man wants to decide whether to invest $1000 in a friends venture. he will do so if he thinks he can get his money back in one year. he believes the probabilities of the various outcomes at the end of one year.
The mayor decides how long each fireworks show will last each year. This year, she has a new plan: each of the 20 town citizens will send in their marginal utility of a minute of fireworks to the mayor who will then compute the optimal amount of fi..
To what extent do we need to worry about the national debt? In what way or ways is it a burden on society?
Use the capital-asset pricing model to predict the returns next year of the following stocks, if you expect the return to holding stocks to be 12 percent on average, and the interest rate on three-month T-bills will be two percent
Let X denote the number of rainy days on the coming weekend. Suppose that there is a 20% chance of rain on Saturday and 50% chance of rain on Sunday. Assume that rain on Saturday and rain on Sunday are independent events, so that Prob(rain on Satu..
Albert Einstein once noted that" compounding of interest is one of humanity's greatest inventions". to illustrate the mind-boggling effects of compounding suppose $100 is invested at the end of each year for 25 years at i=50% per year. In this cas..
The US market requires hardcover books with a marginal costs of $24.00 while the overseas market is normally served with soft-cover texts having a marginal cost of only $18.00.
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