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1. For the same demand and cost conditions, how do price and output of a monopoly compare to those for a competitive firm and why is the deadweight loss of a monopoly a loss of welfare?
2. a)Define the market for Coca-Cola. That is, what would you include in the market for Coca-Cola?
b)Considering your answer for part a, how does what you include in this market alter the market power of Coca-Cola?
c) Explain how cross-price elasticity of demand is relevant to a firm being investigated for antitrust violation. If you were the chief economist for this firm, would you want to show a high cross-price elasticity or a low-low cross price elasticity of demand between your product and a rival product? Why?
The similar same set of price quantity combinations are utilized to compute the price elasticity of demand
How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.
How did the 1971 law that banned cigarette advertising on television solve the prisoners' dilemma for cigarett producers What is the meaing of tit-for-tat in game theory What conditions are usually required for tit-for-tate strategy to be the best s..
A representative company with long-run total cost given by TC =20+20q+5q2 operates in a competitive industry where short-run market demand and supply curves are given by QD = 1,602 - 40P and QS = - 400 + 20P.
saving exceeded investment and the government is running a balanced budget. What is likely to happen What would happen if the government were running a deficit and saving were equal to investment
You do not like this as it will be possible for the large money center banks in Washington, Las Vegas to open branches in your banks geographic market area.
Suppose that long term interest rates in the economy were increasing due to strong economic growth and demand for loans in the world economy. Meanwhile suppose that the Fed was holding down its federal funds rate target. What would probably be hap..
Nominal GDP in a country was $8,759.9 billion in 2003 & $9,254.6 billion in 2004. The price index was 102.86 for 2003 & 104.37 for 2004.
If a regulatory commission establishes a price with the goal of allowing the firm a "fair return" what would be the price and output What would be the firm's profit or loss Which one of the prices in parts b,c, and d maximizes consumer surplus
Changing preferences can also affect changes in land use. In the United States, the proportion of the population in the 65-and-older age bracket is growing. What effects might this have on the location and nature of the residential housing stock?
The Portland Sea Dogs, AA affiliate of the Boston Red Sox major league baseball team, have enjoyed a surge in popularity.
Using Keynesian model and Classical model, analyzed the effect of balanced budget (when the government increases the government expenditure and tax by the same amount not to affect the government deficit) on output (Y), interest rate (r) and price ..
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