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The automobile industry is one of the industries seriously affected by the recession that began in late 2007. General Motors and Ford are among the companies affected by this economic slowdown. They responded, among other measures, by downsizing and undertaking layoffs in order to reduce cost. Discuss the market structure these companies operate in with specific assessment of degree of competition. Discuss income and price elasticities of demand for cars made by these two companies.
In game theory, a dominant strategy is one _______________
If the countries split the market evenly, Illustrate what would be South Africa's production also profit
Why is there a social cost to monopoly power? If the gains to producers from monopoly power could be redistributed to consumers, would the social cost of monopoly power be eliminated?
In accordance with the law of supply, if the price doubled, the quantity supplied would generally ______. A shift in the supply curve for gasoline in the United States would result if _______. A typical demand schedule shows higher sales at lower pri..
Explain how natural monopolies cause market failure? How is the deadweight loss associated with this form of market failure measured? What is a typical form of government intervention to correct it? How effective is this type of intervention? Use the..
When comparing different alternatives?
Offshore Petroleum's fixed costs are $2,500,000 and its debt repayment requirements are $1,000,000. Selling price per barrel of oil is $18 and variable costs per barrel are $10. Determine the breakeven output (in dollars). Determine the number of bar..
Some people claim that the "economic way of thinking" does not apply to issues such as health care. Elucidate how economics does apply to this issue by developing a "model" of an individual's choice.
Your grandfather has offered you a choice of one of the three following alternatives: $5,000 now; $1000 a year for eight years; or $12,000 at the end of eight years. Assuming you could earn 11 percent annually, which alternative should you choose? If..
What institutions explain why workers in some countries have more capital than workers in other countries?
Mom belongs to a dealer's association and the members have kept careful records of how the forecaster has performed - Once she gets the forecast she can proceed with her decision as place a big order or a small order.
Many factors affect the demand for a product, which is a concern for management and the decision-making process. To correctly assess the demand for their products, managers must determine the effect of all relevant variables. Discuss how these variab..
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