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Explain, using diagrams, why a monopoly can potentially earn super-normal profit in both the short run and the long run, while perfectly competitive firms can only earn normal profit in the long run.
Regulations for the banking and financial industries have existed in the United States since the beginning of our country. Give a brief overview f the history of these regulations, focusing mostly on the great depression years of the 1930's.
The consumption of alcohol is often cited as an example of a negative externality. Explain a situation in which alcohol would be considered a negative externality. 3. Describe the purpose of antitrust laws. What do they accomplish.
What is the optimal effluent fee? b. If the cost of pollution control falls by $1 billion at each level of pollution, does this alter your answer to part (a)?
what you must give up to get something; what you are willing to give up to get it. the amount of money that you pay on the margin; the amount of money that you receive on the margin. what you are willing to give up to get it; what you must give up to..
Does Budweiser have a dominant strategy and what is the equilibrium for this advertising strategy game? That is, in which cell will the firms end up?
Yearly demand and supply for the Entronics corporation is given by: Qd= 5,000 +0.5I+0.2A-100P and Qs=-5000=100P where Q is the quantity per year,
The NCAA prohibits schools that are caught paying athletes from participating in bowl games, and sometimes the punishment is even more severe. Explain why schools don't break away from the NCAA and form a league in which athletes can legitimately ..
Identify and describe the four sources of unemployment and the four types of unemployment. For each type of unemployment, indicate if public policy can be used to reduce the incidence of that kind of unemployment, and if so, indicate what policies..
Consider a competitive seller of iced coffee drinks.Suppose that this seller’s marginal cost of producing an amount of such drinks per week is given.What is this seller’s total surplus at this quantity
Are Lay's Potato Chips a normal or inferior good and Doritos a substitute or complement for Lay's, the marginal cost of producing a bag of Lay=s is 60 cents. How much should you charge per bag?
On the other hand, suppose that the Fed has a goal of 10% inflation. Use similar logic as in the previous question to show what the Fed must do to the money supply.
The switch to the use of HFCS from sugar in soft drinks was prompted in large part by its relatively lower price. Assuming a competitive market, what effect would this change have on the equilibrium price and output for soft drinks?
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