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Currently, a fast-food firm has a monopoly in the university student union. The monopoly pays the university $75,000 a year in order to maintain it. The firm earns an economic profit of $290,000 per year. Another fast-food firm wants to enter the market and offer its fare to students. The manager of the first firm calls the university president asking her to maintain the first firm's monopoly. How much would the first firm be willing to pay to keep the monopoly?
what will happen in the market for personal computers? How will the equilibrium price and equilibrium quantity of personal computers change?
The production function is given as f(L, K) = L2 K . In the short run, K is fixed at 1. The price of L is $3 per unit and price of K is $5. In order to produce 100 units as a desired output, how much is the total cost? What is the price elasticity of..
Why is the financial system of a country important for long-run economic growth? Firms care about their after tax return on investment projects. Consider the following data for closed economy
Illustrate that an increase in government spending can improve consumer welfare.
Assume that the following data describe the condition of the banking system: By how much could the banks increase their lending activity?
Analyze the current health care delivery structure in your state (Tennessee). Compare and contrast the major determinants of healthcare market power. Analyze the main competitive forces in the your healthcare delivery system in your state.
Discuss Soutwest Delta airlines merger and describe the competitive environment within the industry. Is there a dominant firm.
Consider a monopolist with demand curve P= 100-Q/2 . The total cost of production is 10Q + 1500 for positive ouput and 500 if it shuts down production. Illustrate what is the maximum profit the monopolist can earn (assuming no possibility of price..
In 1976 independent Texaco retailers file suit against Texaco. In 1990, the Supreme Court of the United States found that Texaco had indeed violated antitrust law. Illustrate which law do you think Texaco was found guilty of violating.
If a high per-bag fee were charged for garbage collection, how would consumers respond? What can cities do to reduce the amount of garbage that goes into landfills?
The rate of annual deflation as applied to each box of kitchen gadgets over the remaining four-year period below which your venture will become unprofitable. Explain how you determined the rate
How is it possible that in perfect competition some firms have economic profits equal to zero while others have a positive economic profit. Can they have a positive consumer surplus? Isn't it a contradiction?
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