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If the demand for cookies increases due to an increase in consumer income, and if, at the same time, increases in price of dough cause the supply of cookies to fall, the price of cookies will?
Why is it that firms can earn profits in the long run in monopoly and oligopoly but not in monopolistic competition and perfect competition? What can firms do in monopolistic competition or perfect competition to make the short run last as long as po..
Suppose that a monopoly has fixed costs of $1000 and marginal cost of $100. They face a straight market demand curve that runs from $500 on the price axis to 1000 on the quantity axis. Plot their demand, marginal revenue, marginal cost and average..
Expansionary Fiscal Policy relies on changes in tax collections and government spending to achieve a non inflationary level of employment. Given this definition what actions and projected consequences did President Obama enact to realize this goal.
AOL, LCC, mistakenly made public and personal information of 650,000 of its members. The members filed a suit, alleging violations of California law. California courts have declared in other cases that the AOL clause contravenes a strong public poli..
Why does government support patent process and why does government not encourages monopoly behaviour.
If public opinion surveys show that the majority of Americans regard inflation as a more serious threat than unemployment: Does this imply that the majority of Americans would rather be unemployed in a period of stable prices than employed in a time ..
If the marginal cost is a constant of 6, would that mean it is an economy of scale or diseconomy? My first thought was that it would be a diseconomy since I thought MC needed to approach zero for very large quantitities.
q. in recent years many plants have closed forcing thousands of employees out of their jobs as well as into new ones.
Elasticity: The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase: “There were nearly four million fewer riders in December 1995, the first full month after the price of a token increased 25 cents to $1.50, ..
RBA Deputy Governor Philip Lowe said that in the current environment thr Austialian dollar might 'overshoot' and become too strong.As a result,interest rates wil remain flexible. Why would the RBA be concerned if the australian dollar was to 'oversho..
Suppose that the manager of a firm operating in a perfectly competitive firm has estimated the firm’s AVC function to be: Determine the firm’s supply curve. What should be the industry price for the firm to produce 400 units of output in each period?
Bellsouth Mobility (BM) ran a pricing trial in order to estimate the elasticity of demand for its services. The manager selected 4 states that were representative of its entire service area and increased prices by 5% to subscribers in those areas. Di..
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