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Answer either True or False for the following 5 questions and Explain your reasoning of why you feel the question is True or False.
1. Relatively high transportation costs make it easier for a firm to achieve a natural –monopoly status.
True or False
Explain?
2. Mark-up pricing might be more suitable for monopolies
3. The higher the fixed cost the lower the break-even output quantity.
4. When there are significant economies of scale, it might be more efficient to have a larger firm operating under its full capacity than having multiple firms, each operating at its peak efficiency.
5. Assuming a constant marginal cost, a lower price elasticity of demand would call for a relatively lower mark-up ration.
Give some examples of waiting lines in everyday life. What decisions should managers of such systems consider? Try to consider the production line as well as waiting in the queue.
Suppose that you can sell as much of a product as you want at $100 per unit. Your marginal cost is MC = 2Q. Your fixed cost is $50. What is the optimal level of output? What is the optimal output , if the fixed cost is $60?
change is an ongoing process in the american workplace. conduct research and identify two motivational techniques that
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what conditions must exist in order for a pure monopolist to achieve economic profits? is the profitability of a firms
Suppose an industry has potential firms with identical technologies with TC = 200 + 2*(Q^2). The demand curve in this industry is D(p) = 18 - ¼ p.
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A price change causes the quantity demanded of a good to decrease by 30 percent, while the total revenue of that good increases by 15 percent. Is the demand curve elastic or inelastic?
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In real terms, the cost of government spending is measured by
Why is it significant for managers to understand both short run and long run supply and demand? Please give one hypothetical or real life example which illustrates your response.
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