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Q1. Currently, there is an incumbent monopoly in a market. A potential entrant may enter. The incumbent can spend X dollars lobbying to require all new firms that enter the market to use a pollution-abatement device that costs Y dollars to install. If lobbying occurs, the pollution-abatement device will be required. Draw the game tree describing this situation. Under what conditions will the monopoly lobby?
Q2. Suppose that the supply curve of healthcare services is perfectly inelastic (i.e., vertical). Analyze the impact of an increase in consumer income on the market price and quantity of the services. Now, suppose that the demand for healthcare services isperfectly inelastic (i.e., vertical), while the supply curve is upward sloping. Analyze the impact.
The average price of red stubble is about $8 per kilo also the fisher people's revenues for catching red stubble immediately cover their costs.
Assume that marginal propensity to consume is constant at 1/2 and breakeven point is $8,000. If income is $10,000, n how much will be consumed and how much will be saved.
The distribution of annual net cash flows is approximately normal. Determine the probablity that the annual net cash flows will be negative. Discuss the probability that the annual net cash flows will be less than $20,000
Demonstrate provide/demand curves also equilibrium for the USA, assuming no imports.
Why would consumers demand 0 minutes in the long run if the price was $.30 every minute.
Find out the equation for the firm's labor demand curve. Find the optimal level of labor for the firm to demand.
In which of the following cases should the United States produce more noodles than it wants for its own use and trade some of those noodles to Italy in exchange for wine.
The company depreciates its assets on a straight-line basis and has a marginal tax rate of 40 percent. The firm's cost of capital is 14 percent. Based on the internal rate of return criterion, should this machine be purchased?
Compute the CV and EV associated with this price increase. how would you interpret these.
Jimmy has a room which overlooks, from some distance, a major league baseball stadium.
Elucidate what does this imply about the use of monetary and fiscal policy over the business cycle.
At the 0.05 level of significance, is there evidence that the population mean force is greater than 1,500 pounds? What assumption about the population distribution is needed in order to conduct the "t test" in (a)?
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