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A"One might expect firms in a monopolistically competitive market to experience greater swings in the price of their products over the business cycle than those in an oligopoly market. However, fluctuations in profits do not necessarily follow the same pattern." Discuss this statement.
BMarket Structure Concepts: Indicate whether each of the following statements is True or False and explain why.
1. Equilibrium in monopolistically competitive markets requires that firms be operating at the minimum point on the long-run average cost curve.
2. A high ratio of distribution cost to total cost tends to increase competition by widening the geographic area over which any individual producer can compete.
3. The price elasticity of demand tends to fall as new competitors introduce substitute products.
4. An efficiently functioning cartel achieves a monopoly price / output combination.
5. An increase in product differentiation tends to increase the slope of firm demand curves.
Illustrate what do you think about the goal of the IMF's aid to distressed countries. What has been the controversy surrounding the IMF austerity programs.
Most practitioners presently update MRP weekly or biweekly. Would it be more valuable if updated daily, or even on a real-time basis.
A nation has a lower inflation rate than all growth. What can be said about each of the following.
It is given an offer to split, if you accept this offer you keep the $1, and the other player keeps $19.
The Alpha Corporation is a member of the lamp industry, which is perfectly competitive. The value of a lamp is $50. The company's total cost function is:
A mathematically fair bet is one in which amount won will on average equal the amount bet,for example, when a gambler bets say, $100 for a 10% chance to win $1000
Explain how has a more diversified labor force affected the corporate structure and the economy.
In the light of the Ricardian model, how might you evaluate the claim by developing nation that they are at a disadvantage in trade with powerful industrialized countries.
Suppose after taxation that the consumer is given a payroll tax rebate that happens to be exactly equal to the amount of gasoline tax he pays. Illustrate what will be the consumer consumption of gasoline now and how much will be the amount of reba..
Suppose Acme decides that instead of cutting the wholesale price of the CD players it will offer a $50 rebate to the consumer (that is, the wholesale price is $200.
Explain the three criteria that are used to determine whether a particular variable is a worthy candidate to be selected as an intermediate target variable of monetary policy.
Illustrate what factors led to the mortgage default crisis. How did mortgage defaults affect banks involved in mortgage lending and mortgage investing.
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