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Firm Size and Competition
Historically, product markets were dominated by large firms and service markets by small firms. This seems to have reversed itself somewhat in recent years. What factors might have been at work?
Describe the firms optimal advertising-to-sales ratio.
Explain how does the economy effect the Airline Industry. What are economic influences that affect the industry in a negative way.
Estimation of sales from multiple regression models - figuring out the own price elasticity of demand and cross price elasticity of demand - the relevant business decision to increase the total revenue.
An industry consists of three firms with identical costs C (q)18q +q2. What is the industry equilibrium (price, output and profits) if the firms have Cournot beliefs?
Would you assume this as an externality, and if you do, what would you suggest be done about it.
Assume that, from an initial consumer equilibrium position, the price of good X falls-explain how and why the consumer's relative consumption of two goods will change.
In the short-run, machinery is fixed also labor is variable for a business that uses only these two inputs. If, at the current level of output, marginal product of labor is declining
Illustrate what price-quantity combination maximizes your firm's profits. What price-quantity combination maximizes revenue.
Show that the government can achieve the social optimum by setting the correct tax prices a, b, and c. What prices should it set?
Explain which of these methods of encouraging growth would you suggest to a newly industrialized economy.
Mention the four assumptions for the Monopolistic competition model.
Elucidate why the price elasticity of demand differ along a demand curve, even if the demand curve is linear.
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