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QuadPlex Cinema is the only movie theater in Idaho Falls. The nearest rival movie theater, the Cedar Bluff Twin, is 35 miles away in Pocatello. Thus QuadPlex Cinema possesses a degree of market power. Despite having market power, QuadPlex Cinema is currently suffering losses. In a conversation with the owners of QuadPlex, the manager of the movie theater made the following suggestions: "Since QuadPlex is a local monopoly, we should just increase ticket prices until we make enough profit." Comment on this strategy. How might the market power of QuadPlex Cinema be measured? Also recommend, the options that QuadPlex consider in the long run. Fully explain your answer in terms of market power.
As we all know, at current it is illegal for parents who want to adopt a child to pay the birth mother for, or to offer to pay for, the babies they adopt.
As a budding entrepreneur, you have purchased a small bagel shop. You have engaged in a market study to categorize your customers' willingness to pay for a meal (coffee+bagel) into 8 equal sized groups: ($5.00, $4.50, $4.00, $3.50, $3.00, $2.50, ..
The organization will pay a $11 dividend in thirteen years and will increase the dividend by 5.5 % every thereafter. If the required return on this stock is 13%.
Assume that the market labor supply and labor demand equations are given through Qs = 5W and Qd = 30 - 5W. If a minimum wage is set at $4.00 (W = 4),
Ralph came to you, his lawyer, for advice and redress. He tells you his story and asks what he can do. You patiently explain to Ralph there are two theories of sexual harassment to pursue. What are they? And what are the elements of each theory..
A construction manager earns $70,000 every year working for a regional home builder decided to open his own home building company.
The growth rate of population in Country A is greater than in Country B. According to the Solow model, which country should have a higher growth rate of output per worker?
Suppose that aggregate price level is constant, interest rate is fixed, and there are no taxes on foreign trade, how much will the aggregate demand curve shift and in what direction if the following events occur?
our friend wants to pay off her two debts in a single payment. The first debt is $570 due in 8 months, and the second is $1,380 due 1 1/2 in years. What will that single payment be if she wants to make it at the end of 1 year given a compound inter..
Compute HHI for both industries. 3. Which industry is more concentrated according to 4-firm concentration ratio? 4. Which industry is more concentrated according to HHI? 5. Which of these measures (HHI and four-firm concentration ratio) can be a..
Assume that gross national debt is equal to $3million and the federal government then runs a deficit of $300 billion. what is the new level of gross national debt.
The demand & supply curves for T shirts in Touristtown, United State, are given by the following equations:
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