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Since 1996, the Federal Communications Commission (FCC) implemented “local number portability” rules allowing cellular phone consumers to switch cellular providers within the same geographic area and maintain the same phone number. How would you expect this to change the market power of cell phone providers in specific geographic areas? Base your argument on the relationship between availability of substitutes, elasticity and market power due to implementation of “local number portability”.
The payoff to a company that enters is its gross profit minus its entry cost, while the payoff to a company that does not enter is 60. Find a symmetric Nash equilibrium in mixed strategies.
Which of the following variables would you use in a regression analysis in order to find a signifcant correlation with exchange rate pound/dollar (Y variable).
To avoid the problem of double marginalization
A standard ’money demand’ function used by macroeconomists has the form ln(m) = β0 +β1 ln(GDP)+β2R, where m is the quantity of (real) money, GDP is the value of (real) gross domestic product, and R is the value of the nominal interest rate measured i..
Given the demand and cost conditions, what price, output and profits result in the short run? What will happen as the firm moves from the short to the long run
Suppose you can hire your mechanic for up to six hours. The total benefit and total cost functions are B(H)=420H-40H^2 and C(H)=100H+120H^2. The corresponding formulas for marginal benefit and marginal cost are MB(H)=420-80H and MC(H)=100+240H. Write..
Explain why most economists believe it is absolutely necessary to allow free trade in an economy. Why is it harmful (under most circumstances) to have tariffs and trade barriers?
A study is performed in a large southern town to determine whether the average weekly grocery bill per four-person family in the town is significantly different from the national average. Identify the null and alternative hypotheses for this situatio..
The manufacturers of information products typically
When demand is elastic, an increase in price causes quantity demanded to______________ and total revenue to__________. When demand is inelastic, a decrease in price causes quantity demanded to ____________and total revenue to__________. If price rise..
All this is known to both players. Suppose both players behave according to the level-k thinking model discussed in class. Two players simultaneously guess a number.
Discuss the role of risk and return in the pharmaceutical industry. In the U.S. health expenditures on drugs amount to about 10% of total health expenditures. In Japan, where physicians are legally permitted to sell pharmaceuticals, national expendit..
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