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In 1974, the U.S. attorney general filed suit against which telecom company for violating antitrust laws?
The firm’s production function is Y = min {A/4; 2B} + 5C. Suppose that the price per unit of input A is 2 euros, the price per unit of input B is 6 euros, the price per unit of input C is 30 euros. What is this firm’s minimum cost of producing 40 uni..
How does the use of collateral and net worth help reduce the problem of adverse selection?
What are some pertinent economic theories that supports Adam Smith agreeing with unequal distribution of wealth leading to social unrest?
What is the law of marginal diminishing utility? We learned it in class today and I understood it a little bit but need more of an explanation.
DBP Inc. just paid a dividend of $0.50. The expected growth rate of dividend is 3 percent. The required return for investors in the first three years is 12 percent and 10 percent for the following three years. After those six years the required retur..
Suppose that Colorado is considering two alternative methods of funding local road construction, matching grants and block grants. In the case of the matching grant, Colorado will spend $1 for every $1 spent by localities. What is the price of an add..
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 40 billion bottles of wine were sold every year at a price of $5 per
Health insurers are beginning to offer telemedicine services online that replace the common office visit. Well point provides a video service that allows subscribers to connect with a physician online and receive prescribed treatments (Bloomberg Busi..
In a purely competitive industry
You may be aware that there are three types of profit: accounting profit, economic profit, and normal profit. The difference between the total revenue and the sum of the explicit and implicit costs of an organization results in economic profit. It is..
A firm manufactures a product that it sells for $100. It sells 1000 units per week. What is its total revenue? It costs the firm $80 to produce a unit. At its current short-run level of production, a firm’s average variable costs equal $20, and its a..
Use some economic science, empirical data and economic history to better help Sebastian understand the veracity of this Facebook message.
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