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In an oligopolistic market, firms pay close attention to the strategies of their rivals. In monopolistic competition, with a large number of sellers, it is assumed that there is not this kind of rivalry, or interdependence. Why is there probably some rivalry in many monopolistically competitive markets?
Suppose the Council of Economic Advisors (CEA) hired you as an Economist (Economic consultant). The head of the council tells that she believes the current unemployment rate of 9 % is too high.
Figure 7.1 is drawn from Harrison and Rubinfeld’s study of the demand for air pollution in Boston. Make a copy of Figure 7.1 and then estimate the total willingness to pay, for a household earning $15,000 per year, or reducing NOx levels from 6 to 4 ..
Markets can give a buyer everything a buyer needs to know about a product even though the buyer does not have the training to understand the specific knowledge needed to build or distribute the product.
What was the goal of the Dawes Act?
One of the reasons economists and managers want to understand a company’s economic profit is to determine the market value of a company. Understanding a company’s value is important for many reasons, one of which is to determine the company’s cost of..
A firm has a choice of 2 production technologies. One allows the firm to produce using production function F (K,L) = 10K^(1/3)L^1/3. The other production function is G (K,L) = min (3K,3L), the firm wants to produce 100 per units per month in each of ..
Consider we wanted to know how many trips versus dinners out you could purchase. If you were told that X = number of trips and Y = the number of dinners out and you were given the following budget information; M=4000, Px=800, and Py=100, What is the ..
Consider a diagram containing isocost curves for the production of a given level of a final commodity in the household production model. Assume that purchased inputs are represented on the vertical axis while the time input is measured on the horizon..
Suppose the government is concerned that research assistants already make too little money and, therefore, wants to minimize the share of the tax paid by employees. Of the three tax proposals, which is best for accomplishing this goal?
Assuming the same financial market transaction costs and risks, will funds tend to move toward the U.S. or Japan if the U.S. Interest rate is 5 %, the Japanese interest rate 2%, and there is a forward discount on the dollar of 2%? How will this effec..
The company believes that the tractor units can be sold at the end of five years of use for 25% of the original purchase price. What is the maximum purchase price the company can pay for the tractor if it's after tax MARR is 12% per year?
Suppose you are considering the purchase of a 2011 Ford Explorer. The car costs $22,000 and you plan to make a $2,000 down payment. For a 48 month lease, the APR is 4.9%. What is your monthly payment? What happens to your answer if you extend the loa..
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