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This post addresses a practice question for the Sherman Act.
The Sherman Act prohibits:contracts in restraint of commercemonopolization of an industryprice discriminationa and ba, b, and c
Draw a graph showing hte above situation. Include in that graph, the monopolist's cost curves, demand and marginal revenue curves and the price and quantities that are indicated by the situation described above.
To best serve customers interested in buying cars over Internet, Smart Motors, hire Nora Jones to respond to customer inquiries.
In the 1970s people had become accustomed to high inflation. In 1979, Bank of Canada decided to fight inflation and decreased the money supply growth rates.
Explain why competitive markets normally lead profit maximizing firms to make choices about resource use that lead to an "efficient" allocation of resources to the market?
Explain how the Central Bank can set the nominal interest rate in the money market. In addition, explain how it can use expansionary monetary policy to boost GDP if the economy is in a recession.
From each pair of goods, pick the good for which demand will most likely be more elastic:
Show the price and output that maximizes profit in this graph. Then use math to calculate the price and output that will maximize the firm's profit. Calculate your profits at this price and output level.
Explain how to describe price elasticity of demand. What are the factors that affect price elasticity of demand.
Illustrtae what is the value of x which will make the manager indifferent among shirking and working hard.
When the Bank of Canada sells the government bonds to a commercial bank, the commercial bank experiences a decline in reserves and in increase in bonds. Total assets are unchanged; this is just a portfolio switch between bonds and cash.
Explain why does the magnitude of price elasticity differ in a and b above, although the same set of price-quantity combinations are used to compute the price elasticity of demand
GDP per capita in a nation like Switzerland can have a low GDP per capita also still have a high standard of living.
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