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How are prices determined under perfect competition? Think about a firm that you have done business with recently. What industry does this firm belong to? For example, McDonald's is a firm in the fast food industry. What market structure would this industry fall under? What are the names of other firms in this industry? Is it monopolistic competition, oligopoly, monopoly, or perfect competition? How does market structure affect the firm's ability to set the price for its products?
If an industrial process emits a pollutant, is it more efficient to monitor the amount of pollutant emitted by each firm and establish a tax per unit of pollutant, or to
When should this item be reordered. What could be the risk of stockout would result from a decision not to have any safety stock.
price is greater than marginal cost and average total cost is not at a minimum. How would it be possible to ‘eliminate' this waste. What would we have to give up.
Do you vote? Why or why not? What does the probability of decisiveness suggest you should do? What are the inefficiencies (social waste) associated with government granted monopolies?
How does capital investment affect the marginal physical product of labor? Does more college education have the same kind of effect? Which is a better investment?
Wal-Mart advertises that it has rolled back prices. If Wal-Mart is rolling back prices to raise revenues, should it roll back prices on products that have a price elasticity of demand that is elastic or inelastic. Explain your answer.
A surface mount placement machine is purchased for $500,000. The SMP machine qualifies as 5-year equipement for MACRS-GDS depreciation. The before tax cash flows, in contant dollars, include an annual uniform series of $120,000 plus $100,000 salvage ..
Why do governments raise taxes on cigarettes and alcohol to raise government revenues? What changes do you make to your demand for gasoline when the prices start to climb up? Would you want to own a business that sells price-elastic products or price..
Even though economic growth is occurring in sub-Saharan Africa, explain two strategies that should be used to enhance the likelihood that economic growth spreads evenly to the masses within Sub-Saharan Africa.
Firms are competing in the DVD rental market, they have a symmetric inverse demand P=310-Q (N-firm model). Marginal cost for each is $30. What quantity does each firm produce? What profit does each firm receive?
Suppose that a monopolistic company faces the consumer demand curve. Find out the profit-maximizing quantity of the product.
A recession? How would your decision change if your firm's plant and equipment needed to be replaced? What if plant and equipment were new?
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