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Evaluate the following assertion: Profit maximization on the part of a monopolist means that the reduction in a sales tax (which it remits to the government) will not lead to a reduction in its prices.
q.auto company comprises small plant that produces speedometers exclusively. its yearly fixed expenses are 30000 and
Why would high transaction costs or imperfect information tend to prevent price-taking behavior?
Describe the effects of price floor and price ceiling? Does the government play an avctive or passive role in setting price floors and ceilings? Do you think that this helps or hinders the consumer?
The Wall Street Journal's experience after an increased its price to 75 cents. Illustrate what implicit assumptions are the publisher and the analyst making about the price elasticity.
In "The Consequences of Mr. Keynes," James Buchanan and Richard Wagner argue that the "unwritten fiscal constitution" of an annual government balanced budget helped restrain the growth in government, but the Keynesian argument for a balanced budge..
Summarize the monetary policy tools implemented to combat the great recession since 2008.
Consider the market for mustard, which is a complement to hot dogs. Suppose the price of pork, an input in the production of hot dogs decreases. Which of the following accurately describes how the mustard market is affected?
Since its founding in 331 B.C.E., the city of Alexandria has been a center of trade for the Mediterranean countries, as well as the Middle Eastern countries. Part of this is due to geography, but it is also due to the network effect. What is the sour..
The muffler on your car suddenly needs repair, also there are only two automobile repair shops in town.
A vendor is offering an extended repair contract on a machine. The firm's experience is that this will cover repair costs over the next four years of $200, $200, $400 and $500. At 6%, what is the extended repair contract worth now?
how the limit on the amount of reimbursement is not the only effective way to decrease expenditures for health care if health care providers succeed in increasing the demand.
Suppose that Home Depot raises $900,000 million by issuing $600,000 of long-term debt and sell common stock for $300,000. The funds raised are used to buy new machinery and increase materials used in producing inventory. What items of the balance she..
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