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Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms. (At the same time, one internet business such as grocery home deliveries have continually suffered steep losses regardless of scale. Explain why.) Could lower transaction costs in e-commerce ever make it easier for small suppliers to compete? As noted in Chapter 3, network externalities are often an important aspect of demand for information goods and services. (The benefits to customers of using software, participating in electronic markets, or using instant messaging increase with the number of other users.) How might network externalities affect firm operating strategies (pricing, output, and advertising) and firm size?
Compare the additional revenue Circuit City makes as it moves from 2 million to 4 million copies of Vista with the additional revenue it makes as it moves.
bill operates a boat rental business in a competitive industry. he owns 10 boats and pays 1000 per month on the loan
Economists assume that firms seek to
Suppose government spending increases. Would the effect on aggregate demand be larger if the Fed took no action in response or if the Fed were committed to maintaining a fixed interest rate? Explain why and give an example
Consider the following facts. After the age of 25, persons with college degrees earn more than persons with no education beyond their high school degrees, ceteris paribus. Moreover, persons with high school degrees earn the same as persons who have h..
Which of the following would most likely result if the federal government increased spending without increasing tax revenues during a period of full employment?
Consider a health utility questionnaire with only 3 domains (physical role, social role, and cognitive health), each of which has two levels (no problem and some problems). Calculate the utility of a person having some cognitive problems and some so..
Imagine how managerial decisions may be easier or more difficult if there were no antitrust restrictions in the U.S. Provide an example to support your response.
Assuming that the MPS is 0.2, government spending is RM15 billion and there is no crowding out. a.) Assuming that MPS increases to 0.3 how much the government should increase expenditure to increase the aggregate demand by RM40 billion?
Suppose that fiscal policy changes output faster than it changes the price level. How might such timing play a role in the theory of political business cycles?
what is the marginal cost for Apples-R-Us? show that Apple-R-Us marginal cost curve intersects average costs at average costs minimum?
Because increased government spending or tax cuts cause higher government deficits, they also contribute to a rise in total planned expenditures and aggregate demand. Previously, the government operated with a balanced budget; however, recently, ther..
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