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Antitrust authorities at the Federal Trade Commission are reviewing you company' recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power. A hearing is scheduled for your company to present arguments that your firm has not increased its market power through this merger. Can you do this? How? What evidence might you bring to the hearing?
Given the Demand curve for flyswatters Q = 500-50P, estimate the quantity demanded for the following prices.
What is the profit-maximizing price to charge a Texan for a car wash? What is the profit-maximizing price to charge a Californian for a car wash?
In article on the steel industry, The Wall Street Journal noted that as steel prices were falling, steelmakers were not cutting production
From each pair of goods, pick the good for which demand will most likely be more elastic:
Is the compensation scheme at your present place of employment consistent with a reasonable solution to the agent principal problem?
Essay on Market imperfection associated with negative externalities
Using the IS/LM/BP model, demonstrate the effect of each of the following changes. Assume that the economy is a small country with perfect capital mobility and a flexible exchange rate.
You are a manager of a large but privately held online retailer that currently uses 17 unskilled workers and 6 semiskilled workers at its warehouse to box and ship the products it sells online.
Why might the existing firms in a cartelized industry prefer to be regulated by the government? What is the problem with common property resources?
Assume two firms, A and B, serve a market with demand D(p) = 11 - p. Also assume that (i) firms compete for market share
What is the difference between contractionary and expansionary monetary policy?
Life insurance companies require applicants to submit to a physical examination as proof of insurability prior to issuing standard life insurance policies.
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