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1. What are the incentives to innovate for a monopoly firm as compared with a firm in a competitive market if patent protection is not available?
2. Would you consider the fractional ownership jet taxi industry (NetJets, FlexJets, etc.) to be a contestable market? Why or why not?
I have a theory that if you ask participants to sort one-sentence characteristics of people (e.g., "I eat too fast") into five piles ranging from not at all like me to very much like me, the percentage of items placed in each pile will be approxim..
Suppose a monopolist is able to engage in perfect first-degree price discrimination in a market. It can sell the first unit at a price of 10 euros, the second at a price of 9 euros, the third at a price of 8 euros, the fourth at a price of 7 euros..
Assuming price remained at $8 but production was cut to 3 million meals per day, calculate producer surplus and consumer surplus. Calculate the deadweight loss from underproduction.
The income elasticity of demand for clothing is estimated at +0.5. What would you expect to happen to clothing revenues when incomes are rising When incomes are falling Is the effect stronger or weaker than the movie industry results
There are significant reductions in the amount of water that avocado farmers are allowed to use in California, where most U.S. avocados are grown.
John runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth)
what are the burdens of the public debt?many people advocate taxing the rich to alleviate the debt problem but the
What is the expected value of earnings in the middle period of life? Given this number, what is the present discounted value of expected lifetime labor earnings? If the consumer wishes to maintain constant expected consumption over her lifetime, h..
Return again to the cartel in Problems 4 and 5. Now suppose that the market game repeated indefinitely. What is the discount factor (sigma) is necessary now in order to maintain the collusive agreement in an indenitely repeated setting
What happens when the Fed monetizes a budget deficit? Is this something it should always try to do? ( Hint: Outline the benefits and costs of such a policy over time.)
Suppose P=20-2Q is the market demand function for a local monopoly. The marginal cost is 2Q. The local monopoly tries to maximize its profits by equating MC= MR and charging a uniform price. What will be the equilibrium price and output
Eva runs a small bakery in the village of Roggerli. She is debating whether she should extend her hours of operation. Eva figures that her sales revenue will depend on the number of hours the bakery is open as shown in the table.
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