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How should a monopsonist decide how much of a product to buy? Will it buy more or less than a competitive buyer? Explain briefly.
q1. choose a real-life example of a firm that you think is part of an oligopoly market and describe the characteristics
Using two-part pricing , what will be the entry (membership) fee? What will be the per-unit fee? Compute the profit earned from a typical consumer with two-part pricing. Hint: same as perfect price discrimination profit.
Does the company behave like a monopoly or more like a competitive firm? Has the monopoly been cited for monopoly behavior?
What are the most important things to consider when making a pricing decision for a good whose demand as well as is elastic.
Elucidate in detail the interrelationships between economic facts, theory, and policy. Critically evaluate this statement: "The trouble with economics is that it is not practical. It has too much to say about facts."
Three estimators at Tech Engineering have come up with the estimates of cash flows as shown in the table below for a project with a life of 10 years. Compute the expected NPW at 20%.
In 1976 independent Texaco retailers file suit against Texaco. In 1990, the Supreme Court of the United States found that Texaco had indeed violated antitrust law. Illustrate which law do you think Texaco was found guilty of violating.
One point made is that most demand curves are downward sloping. Can you think of any situation where an individual's demand curve for a product is upward sloping.
Professional sports players are generally paid much more than farmers, factory workers, engineers also teachers.
Explain the role culture may play in influencing entrepreneurship both at the individual and social level. Define culture in your response.
You are consulting with a company that is failing. It seems the CEO (recently fired) paid no attention to the board of directors. He was also heard to say, "I don't serve stockholders, employees, and government regulators - they serve the CEO." Write..
Compute the numerical elasticity of long-run demand. Is it unitary, elastic, inelastic, etc. Explain why would consumers demand 0 minutes in the long run if the price was $.30 per minute.
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