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What is the difference between the auto industry of the 1950's and today. Has consumer surplus been affected in any way due to the changes in the auto industry structure, and if so, how?
In the model of a dominant company, assume that the fringe supply curve is given through Q = -1 + 0.2P, where P is market price and Q is output. Demand is given by Q = 11 - P.
Provide an example of economic forces at work. Does this issue affect individual consumers or firms or the economy as a whole?
China pegs the yuan to the United States dollar at 8.3 yuan each dollar. Assume that this is above the equilibrium level of dollar in foreign exchange market.
Suppose that two power plants, company 1 and 2 release sulfur dioxide (SO2) in a small urban community that exceeds the emissions standard.
Eddie is a production engineer for a major supplier of component parts for cars. He has determined that a robot can be installed on the production line to replace one employee. The employee earns $20 per and benefits worth $8 per hour for a total ..
Show the first and second order condition for profit maximization. Illustrate what is the price elasticity of demand faced by this monopolist.
Using an IS-LM diagram analyze what would happen to the economy if both consumer and business confidence decrease dramatically. Which policy mix would you advocate? Explain using a diagram.
Explain how would the subsiquent changes in price affect total revenue. What are the major determinants of price elasticity of demand.
An industry consists of two firms with identical costs C(q) = 5q +q2=2. The firms can either collude or compete. If both collude, they each produce qm (half the monopoly output Qm). If one rm colludes and the other competes, the latter produces th..
Exclude the appealing logic of the Coase theorem, private actors often fail to resolve on their own the problems caused by externalities.
Fleet rental car company purchased 10 new cars for a total cost of $180,000. The cars generated income of $150,000 per year and incurred operating expenses of $60,000 per year. The company ises MACRS depreciation and its marginal tax rate is life ..
Elucidate factors would you consider before investing in the emerging stock market of a developing country.
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