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On one diagram, show demand for river transportation, the marginal cost curve for Fulton to provide it, and the marginal cost curve for Vanderbilt to provide it. Indicate the price of travel when Fulton held the legal monopoly, and the price of travel with Vanderbilt competing. Do you think more people traveled each day in the monopoly environment or in the competitive one?
Explain how much output should be produced in palnt 1 in order to maximize profits. Illustrate what price should be charged to maximize profits.
A firm produces both crayons and pencils in constant proportions (1/3 and 2/3 respectively). Its costs are C(q1;q2)=1000+10q1+5q2+9q1q2, where q1 is the output of crayons and q2 the output of pencils. Calculate its minimum efficient scale (MES) of pr..
You are a financial planner attempting to evaluate your investment strategy to recommend to clients. Based on your economic background, you believe the Fed is going to loosen monetary policy.
How an airline executive might use tourism economics relating to passengers load factors, ticket prices discounts, frequent flyers programs, joint fares, flight frequencies.
In the 1980s, a shortage of registered nurses in the United States led to an increase of almost 21 percent in the real average hourly earnings of RNs from 1981 to 1989 (Pope and Menke, 1990). This increase was the highest of any occupational group. U..
How much is she actually paying the credit card company, including interest, when her credit card is paid off?
The Occupational Safety and Health Administration (OSHA) has determined that the probability of a worker dying from exposure to a hazardous chemical used in the production of fertilizer is 0.008. The cost of imposing a regulation that would ban the c..
Which of the following is NOT a known cause of the Russian Ruble Crisis of 1998? As a consequence of the ruble crisis in 1998, the Russian government was forced to default on ___ debt as well as suspend payment to ___. Which of the following is FALSE..
For which of the following goods would a 10 percent price increase lead to the largest income effect for most consumers?
US imports oil at the world price, $55 per barrel. The domestic supply curve in barrels per day is S = 2500000 + 250000P with P in dollars. Domestic demand curve is D = 70,000,000 - 500000P. Draw the US demand and supply curves for oil and indicate h..
Zelda Industries is the only firm of its kind in the world. Due largely to historical accident, it began producing streganomas in 1985 in a vacant warehouse. Virtually anyone with a degree in college chemistry could easily replicate the firm's formul..
The gross domestic product of countries Babistan, Turma, and Deru are $1,500, $2,500, and $3,500, respectively. There are 1,500 miles between country Babistan and countries Turma, and Deru. Does the gravity equation predict that there will be more tr..
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