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Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car dealers in your area?
In that same situation, what would the four-firm concentration ratio be?
The percentage changes in quantity demanded divided by the percentage change in price.
Show the first and second order condition for profit maximization. Illustrate what is the price elasticity of demand faced by this monopolist.
Two companies produce the same product. The firm's each determine their own output and the combined output of the two is sold at the market price.
In the Ricardian model, everyone seems to benefit from trade. However, the Heckscher-Ohlin model seems to show that some lose from trade as well. Who are the losers in the HO model and how do they not benefit from trade
Now suppose that the monopolist fears entry, but thinks that other firms could produce the product at a cost of $15 per unit (constant marginal and average cost) and that many firms could potentially enter. How could the monopolist list attempts t..
Describe the current general interest rates. Is the current interest level one that promotes or retards growth in the economy.
Determine the profit-maximizing output and price. b. Calculate profits and deadweight loss. c. If this was a monopolistically competitive firm, would your answer in parts a and b change.if this was a monopolistically competitive firm, what would happ..
Graph the isoquant that these calculations imply. Explain in very clear and complete terms why the isoquant has the shape that you observe.
If asked to provide your professonal opinion on a company's ability to maintain operations and its solvency into the future, what questions might you ask, what ratios might you calculate, and what analysis might you conduct to support your opinion
Assume labor is the only cost of production and labor coefficients (hours of labor required per unit of output) in MACONDO and KRYPTON for each good are as follows:
Select an economy that initially has a labor force of 2000 employees. Of these employees, 1900 are employed and each works forty hours per week. Ten units of output are produced by each hour of labor.
Dilomatic tensions over the war with Iraq also patriotic fervor led the state legislature in South Carolina to initiate a resolution boycotting French products.
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