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Some firms with monopoly power are more focused on market share, size and influence in the economy. This is particularly true if there is a tendency for ownership (stockholders) and control (managers) to be separated. These firms sometimes are willing to operate with normal or near normal profits and they price accordingly. Starting from a standard monopoly profits maximizing model, SKETCH A GRAPH showing how the monopoly might price and how much it would produce if it sought size and only normal profit. Management salaries are included in the ATC function so the decision makers usually are not giving up much in this strategy. Is this price similar to the perfect competitive model?
q. assume as a rule of thumb one commonly assumes which the value of land equals the 14-fold of its annual rental
What are the informing factors of global interdependence, including the economic factors, political dynamics and cultural differences.
Elucidate what could be done to encourage people to spend more so as to increase aggregate demand and invariably, create employment possibilities.
Explain why study pure competition if actual purely competitive markets do not exist? What can we learn from highly competitive markets. Briefly discuss.
Due to a technical breakthrough, the fixed costs for a firm drop by 25%. Prior to this breakthrough, fixed costs were $100,000 and unit contribution margin was and remains at $5.00. The new amount of break-even units will be?
Assume the farmer buys insurance that pays 3$ if it doesn't rain but costs 2$. Illustrate what is their consumption when it rains.
Among the types of costs faced by a firm (short-run costs, fixed and variable, as well as long-run costs), how cutting cost can be accomplished? What are some specific examples of how firms have used technology to lower costs?
If the economy is competitive so that factors of production are paid the value of their subsidiary products, what is the share of total income that will go to land.
Although most people agree that the government’s role in the free market economy should be limited, the degree of appropriate government involvement is contested
Analyze the economic impact of major social problems and issues such as poverty, discrimination, crime, income distribution, the role of government, and other major issues.
illustrate the effect of an increase in P2 on the consumption of both x1 and x2. Label income and substitution effects for both goods.
What is the present worth of each of the deals? Your company uses a MARR of 15% for this sort of analysis.
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