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Question 1:
(a) Describe the argument that market entry erodes profits in the long run. (b) Give some reasons and discuss possible strategies used for profits to persist even in the long run. Give examples.
Question 2:
Describe three models of oligopoly and discuss the strategic interactions among firms regarding either pricing or output decisions in each case. Use examples to illustrate your answer.
finding marginal product
Leading Economic Indicators The 11 key economic indicators that have been establish to lead business cycle turning points. Of the 11, four are basically used in business;
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Consider an industry with a sole producer, a monopolist. The latter faces cost function C(Q)= Q/2 and aggregate (inverse) demand P(Q)=1 - Q (zero for Q> 1). Illustrate all your ans
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What market type does the company you work for operate under? What makes you think this? Do you think that this is the right market type for your company to operate in? Explain you
(a) Describe how commercial banks determine their output, interest rates and profit levels assuming they act as oligopolies. (b) To what extent is the above statement a reality
Menu Costs Why do firms not change their prices very frequently? Obviously, the costs of changing prices at frequent intervals and in small amounts must be more than the b
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