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If a specific subsidy (negative tax) of s is given to only one competitive firm, how should that firm change its output level to maximize its profit, and how does its maximum profit change?
The utility-maximization model assumes that the typical consumer is rational and acts on the basis of well-defined preferences. Because income is limited and goods have prices, the consumer cannot purchase all the goods and services he or she migh..
A firm, which is the only supplier of a good located in a particular town, is accused of engaging in anticompetitive tactics in order to protect its monopoly position in that town. As part of its defense, the firm has argued that the geographic an..
Elucidate the price should you charge for a midsized automobile if you expect to maintain your record sales.
The ability for economy to eliminate any imbalances in actual and potential output is sometimes called self-correction. Using an aggregate supply and aggregate demand diagram,
Suppose that real GDP per hour of work grew by 6 percent last year and the capital per hour of work grew 9 percent. Using the one third rule, by how much did the increase in capital per hour of work increase real GDP per hour of work?
Calculate GDP and the country's gross national expenditure using the expenditure approach and derive the country's gross national product (GNP)
If you used a first-price sealed bid auction and the optimal strategy for the participants was to shade their bid by 20% and the participants used this strategy, who would win and what would the winning price be Which auction should you choose ..
As the economy begins to recover from a recession and more people go back to work.
If the government imposes consumption tax on the good that raised prices by $1, by how much will the consumer's surplus change? Show the relationship between EV, CV, and consumer surplus using compensated and uncompensated demand curves. If you your..
Most religions argue that individuals should not fully exploit market positions by charging individuals the maximum amount they are willing to pay. However, according to the text, the best policy to follow seems to be to allow prices to rise to th..
Describe several major antitrust cases in the United States. How do these laws affect (or affected) your work place or products used at your work place.
Compute total revenue at each and every price for this demand curve.
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