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If marketing programs depend on voluntary contributions from farmers, why might they fail? why do you think drug companies spend so much on advertising for drugs they have a patent on (essentially giving them monopoly power) but so little on drugs with an expired patent when generic alternatives are available?
Explain how to get the producer surplus. What about the area that lies beneath the x-axis.
What price-output combination would exist with efficient pricing (MC = P)? Draw a graph with MC, Demand curve and MR curves for the problem above.
At what level must be a ceiling price imposed upon the monopolist's market to cause the monopolist to supply the efficient quantity supplied?
if customers also purchased French fries and a soft drink, Wall Street Journal reported that company was hoping novel promotion would revive its US sales growth. illustrate what do you think disrupted McDonald's plans.
What steps can a government take to ensure that sustainable development is always considered in assessing which major economic projects or investment proposals to accept.
The united states exports a substantial amount of scrap iron and steel to Japan and other countries. Explain Why do some US users of scrap iron and steel support a prohibtion on these exports
Economic surplus could be increased at a higher price because firms would generate more revenue.
Assume new suppliers enter the market due to the increase in demand so the new supply curve is Q= -500 + 10P. Illustrate what are the new equilibrium price and equilibrium quantity.
Do you think such a policy will increase demand for electronic appliances.
Homer's boat manufacturing has a monopoly on boat sales in the region. Homer's marginal cost of the 8th boat produced is $1,200. He produces only eight boats and can sell all eight boats for $1,500. The elasticity of demand at this price is -2. Is..
Help wanted advertising is higher than usual also the consumer price index is up more than expected.Inflation has slowed markedly also the Dow Jones average is at record levels.
Discuss the information asymmetry, the adverse selection problem,and why soft selling is a successful signal.
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