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The U.S. cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under the proposed settlement, cigarette companies will make fixed annual payments to the government based on their historic market shares. Supposed a manufacturer estimates its marginal costs at $1.00per pack, its own price elasticity at -2, and sets its price at $2.00. The company's settlement obligations are expected to raise its average total cost per pack by about $.60. Illustrate what effect will this have on its optimal price?
Is it reasonable from an economist's viewpoint to minimize the role of the government in accordance with Nozick's moral argument.
Illustrate what will the level of output and price in the long run if this industry were perfectly competitive.
By how much should domestic auto-makers increase the cost of automobiles if they wish to increase sales by 5 percent next year.
Assume which one company acquires all the suppliers in the industry and thereby creates a monopoly.
Overhead at the water cooler the demand also cost estimate which were provided at the meeting are very useful.
Explain how are the gains from trade shared among the parties to a trade. Is it possible for specialization and trade to increase total output of traded goods.
Most macroeconomists believe it is a good thing to taxes act as automatic stabilizers also lower the size of the multiplier.
Describe some forms of private spending which represent consumption some forms which represent investment.
A farmer determined a natural gas preserve on his property.
A group of 20 doctors are considering forming a new medical group also has asked you to prepare a report on whether they should build a facility in an area.
Some of the production of an economy creates pollution illustrated by the move.
Now allow Foreign and Home to trade with each other, at zero transportation cost. Find out and draw a graph of equilibrium under free trade.
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