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An industry is known to face market price elasticity of demand e =-3. Suppose that this elasticity is approximately constant as the industry moves along its demand curve. The marginal cost in this industry is $10 per unit, and there are five firms in the industry. What would the Lerner index be at the Cournot equilibrium in this industry?
Suppose a monopolist can purchase Labor at a price w = 27 and can purchase Capital at a price r = 3. The monopolist's production function is given by Q = L1/2K1/2. The demand facing the monopolist is given by P = 402 - 6Q.
These parameters are the same for all participants. It is found that the amount of income not declared is, on average, different among the countries. Discuss possible explanations for this finding.
George and KC have been working jobs that pay $20,000 and $30,000/year, respectively. They are trying to decide whether to quit their jobs and jointly open up a taco stand on the beach, which they estimate can earn $60,000/ year. How will the taco..
What is the percent of interest paid on this loan? (Do not round intermediate calculations. Round your answer to the nearest whole percent.)
Describe the firms in the proposed merger. List their annual sales, and extent of their operations. It would help to include sales of the top four firms.
In this exercise, you will find actual points on the combined PPC of the two states. For each of the following values of one good, calculate the maximum amount of the other good that the two countries could produce working together.
Would you expect such information to increase productivity? Why or why not?
In order to meet TMDL limits in a cost-effective manner, what is the appropriate role of the equimarginal principle? What about the economic efficiency principle?
At an 8% annual interest rate, what is the present value ofthe cash flows To receive full credit you must use 2 arithmetic gradients. Year Revenue 1 $300,000 2 $600,000
question 1 suppose that oil prices rise sharply for years as a result of a war in the middle east. illustrate with a
a Caribbean wedding was less than $10,000. Listed below is a total cost in $000 for a sample of 8 Caribbean weddings. At the .05 significance level is it reasonable to conclude the mean wedding cost is less than $10,000 as advertised? 8.6 9.2 10.4..
In what ways does our trade model require further extension?
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