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A few questions in this problem set are based on the comments made by James Love to Congress regarding antitrust policy and the Petroleum industry. These are found at the end of the module on Antitrust Policy. Try to read the entire article carefully first... and then see if you can answer the questions (rather than fishing out the answer each time). Obviously you will go back and check to make sure you have it correct ... but to absorb the content it is best read it all first before going back.
Why is less concentration a problem for a cartel?
A. If you cannot concentrate you lose focus.
B. Licensing fees must be paid on an individual basis - resulting in wasted costs collectively.
C. More attention will be paid by regulators as more firms are in the industry
D. It is harder to monitor cheating within the cartel.
Explore how a firm determines the optimal scale of a plant for a given rate of output and why this determination relates to longer-run strategies versus current operations. Also, discuss the differences between economies of scale and economies of sco..
The engineering team at Manuel’s Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $380,000 initially and is expected to increase revenue $125,000 per year eve..
Its demand curve can be written as P = 160 - Q and its short run total cost curve is equal to TC = 1000 + Q^2. What is the rate of output that maximizes ZZZ, Inc.'s short run profits?
q1. in 2009 it was proposed that the state of nevada create an entertainment tax that would require the states 25 legal
Illustrate what is the Accord's perceived relative advantage with respect to reliability.
Solve for steady-state level of captial and output. What savings rate would be necessary to achieve a steady-state output of 150.
A CNC mill was purchased 4 years ago for $50,000. The current market value is $26,000, which will decline as follows over the next 5 years: $20,000, $16,250, $14,000, $12,000, and $8500. The O & M costs are estimated to be $6000 this year. These cost..
If the Federal Reserve has set the risk-free interest rate at 8 percent, Illustrate is the proper current cost of this investment.
As the exclusive carrier on a local air route, a regional airline must conclude the number of flights it will provide every week also the fare it will charge.
Prove that if the weak preference ranking R is transitive then the corresponding strict preference ranking P (using the definitions we gave in class; this is always understood whenever we are talking about indifference and strict preference) is also ..
What could firm A do to make its threat credible without building excess capacity? Will firm A use the low price as a threat if firm B enters?
Calculate real GDP in each year, and the percentage increase in real GDP from year 1 to year 2 using year 1 as the base year. Next, do the same calculations using the chain-weighting method.
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