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What does the size of the minimum efficiency scale of production imply about the following: a.) The price of a production in a competitive market compared to the price of the same product in a pure monopoly makret? b.) The degree of control over price (whether a firm is a price taker or price maker)? c.) The degree or extent to which firms are productively and allocatively efficient?
What happens with no diminishing returns? Consider a Solow model where the production function no longer exhibits diminishing returns to capital accumulation. Draw the Solow diagram in this case. What happens to the growth rate of per capita GDP over..
Consider two firms: a yoga studio and a bar. The bar produces noise which reduces the price that the yoga studio can charge from its customers.Assume that the bar can sell an unlimited amount of drinks at the market price p and its marginal cost incr..
Using an appropriate diagram, impact of the monopolist on the society's welfare
Structuring problems of risk in mining and transporation
Let x be eggs and y be bagels. An individual utility function is given by U(x, y) = ½ x + 1 y. This individual budget constraint is 4 = 2 x + 1 y. (You are encourage to draw this individual indifference map and budget line). At the point at which thi..
Because of the free-rider problem
The following equations are the market demand and supply schedules before the imposition of a per unit tax. (Qd = quantity demanded, Qs = quantity supplied, P = price) Assume there is an imposition of a $2 per unit tax on producers. Graph the supply ..
The World View article "Foxy Soviets Pelt the West: Sable Monopoly Traps Hard Currency, Coats Capitalists" provides evidence that
Explain how Strategic Compensation is a major component of human resource systems. In your discussion include the four aspects:
Consider a market with one large firm and many small firms. The supply curve of the small firms taken together is S(p) = 100 + p. The market demand curve for the product is D(p) = 200 - p. The cost function for the one large rm is c(y) = 25y. (a) Sup..
Evaluate Gatorade’s decision to launch the new G Series product line and the challenge this represents to the company from an integrated marketing communications perspective.
With reference to the theories of Baumol and Schumpeter, and the activities of one or more real world entrepreneurs during the last decade, explain how entrepreneurship can be either productive or unproductive (/destructive)
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