Consider the following table. Which option correctly fills the blanks in the table? Perfect Competition Oligopoly 2 Residual Demand Curve 1 A. 1 = horizontal; 2= downward-sloping; 3= downward-sloping OB. 1 = downward-sloping; 2= horizontal; 3= downward-sloping OC. 1 = horizontal; 2= horizontal; 3= downward-sloping OD. 1 downward-sloping; 2= downward-sloping; 3 me M downward-sloping Monopoly 3
Q: good. Which of the following is a disadvantage of this mechanism? Ⓒa. It may lead to under-provision…
A: The free rider problem refers to a situation where individuals can get benefit from a public good or…
Q: Possibility A I || Table 2-1 Economics 94 87 77 History 76 84 91 Referring to Table 2-1: A student…
A: The potential benefit or value that is forgone when choosing one alternative over another is termed…
Q: Explain residency restrictions in China before the 1970s and how the relaxation of these…
A: The real estate sector has significance in economics owing to its influence on regional, national,…
Q: A friend of yours explains that the unemployment rate for Stockton City, NJ has been declining for…
A: Labour force is group of people who are either working or looking for work but couldn't find a job.…
Q: 4.5 Beginning with long-run equilibrium, use the aggregate demand and aggregate supply model to…
A: *** Since you have posted two independent questions, according to our guidelines, only the first…
Q: Classify the characteristics of economic development in South Asia as either elements of…
A: The sustained and coordinated efforts aimed at improving the economic well-being and quality of life…
Q: PRICE 10 9 8 10 7 5 3 2 1 Supply 50 100 150 200 250 300 350 400 450 500 QUANTITY Refer to Figure…
A: The price elasticity of supply = % change in quantity supplied / % change in price
Q: = Aisha (A) and Baasim (B) want to share a pizza of size 1. Suppose that Aisha derives utility uA…
A: The Rubinstein solution is a concept in game theory that provides a solution to the bargaining…
Q: 22. Suppose a firm has a production technology given by the Cobb-Douglas production function:…
A: GivenProduction function: L represents labor, K represents capital and A represents…
Q: Price 20 15 10 5 Market for Widgets Supply Demand 5 10 15 Suppose a price ceiling of $5 is placed on…
A: Price ceiling is the maximum price that can be charged. It is binding if it is set below the…
Q: Show the effect this shock has on the market for cashews by shifting the demand curve, supply curve,…
A: Given diagram shows the condition of market Equilibrium.
Q: In 1973, the price of a Big Mac was $0.50. Use the information in the table below to find the price…
A: The Consumer Price Index (CPI) is a measure of the average change in the prices of a basket of goods…
Q: Which one of the following statement is incorrect? Under prefect competition In the long run, an…
A: Factors of production are the resources or inputs used in the production process to create goods and…
Q: B-e-l-o-w- -a-r-e- -t-h-e- -l-i-f-e- -l-e-s-s-o-n-s- d-o-e-s- -M-on-o-p-o-l-y- -t-e-a-c-h -u-s-…
A: A monopoly alludes to a market structure in which there is a solitary vender or maker of a specific…
Q: 350 8 PRICE (Thousands of dollars) 250 200 8 8 50 QUANTITY (Loft houses) True False Market Price 4…
A: Maximum willingness to pay (MWTP) is the highest price or value that an individual is willing to pay…
Q: The tree diagram in figure below describes the uncertain cash flows for a this information, a. What…
A: A criterion for assessing possible investments is the minimum acceptable rate of return (MARR). The…
Q: 1000 A 500 0 500 1000 Rice (Intons) 1000 750 T-shirts and 750 tons of rice. 500 T-shirts and 1000…
A: Production Possibility Frontier (PPF) is the curve which shows different production combination of…
Q: Dix) is the price, in dollars per unit, that consumers are willing to pay for x units of an item,…
A: In terms of economics, the equilibrium point is the point at which the amount that consumers demand…
Q: 2. With a given quantity of economic resources, the US can produce 3 units of food or 8 units of…
A: Absolute advantage refers to a situation where a country, individual, or company can produce a good…
Q: Read Chapter 13 and fill in the grid below. Also add a column to the grid -to the "right" of Average…
A: The table can be filled as follows:
Q: During the pandemic, pharmaceutical and biotech companies worked intensively to develop a vaccine…
A: Monopoly is a form of market structure in which a single firm sells a commodity for which there are…
Q: Any change in the global monetary system (please assess the increasing use of currencies other than…
A: The systems and procedures which regulate global money transfers, exchange rates for currencies, and…
Q: rium interest rate and decrease the quantity of funds saved and invested.
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 3. Consider a model where a consumer, Mehdi, is deciding how to allocate their 24 hours each day…
A: Wage is cost of leisure. So change in wage , change cost of leisure and thus consumption of leisure…
Q: Brazil relies on agriculture to help support their food supply and economy, how could Brazil utilize…
A: Sustainability refers to the capacity to endure and maintain a balanced and coordinated relationship…
Q: Discuss credit card safety and precautions?
A: A credit card is a plastic card issued by a financial institution, typically a bank, that allows the…
Q: What is the link between game theory and market structures? Which market structure is game theory…
A: Game theory refers to a branch of economics that studies strategic interactions between individuals…
Q: Use the following information to calculate the inflation rate (one decimal point) for 2020. CPI…
A: Inflation rate is the rate at which there is an increase in general…
Q: For Perfect competition markets, determine whether there is market supply curve or not. If yes, how…
A: Perfect competition market refers to the market scenario in which there are many sellers and buyers.…
Q: After reading Chapter 11, Case 11.2 (pages 178-180) from the E-Book, Economics for Healthcare…
A: Introduction: Not-for-profit hospitals play a crucial role in providing healthcare services to…
Q: The owner of the Jets is going to offer a contract to a free agent player, Hapoleon. If signed,…
A: The optimal wage is the economic wage level that maximizes an individual or a group's utility in the…
Q: Africa region’s economies are severely affected by the global crisis. Policy makers across the…
A: Possessing enormous natural resources, an expanding middle class, and growing foreign investment,…
Q: Suppose that a year after opening, Kenji has developed a new system that has increased the…
A: We have given the production function of pizza. q1 = 6K0.5 L0.5Where q1 is the quantity of pizza…
Q: 5.4 Food service firms buy meat, vegetables, and other foods and resell them to restaurants,…
A: For this issue, US Foods and Sysco, the two biggest firm's in the food service sector, publicly…
Q: 4.3 Starting from long-run equilibrium, use the basic aggregate demand and aggregate supply diagram…
A: Since you have posted multiple questions, we will provide the solution to only the first question as…
Q: Anderson International Limited is evaluating a project in Erewhon. The project will create the…
A: Net Present Value (NPV) is a financial metric used to evaluate an investment or project's…
Q: Use the information in the following table to calculate Nominal Gross Domestic Product (Nominal GDP)…
A: Nominal GDP, or Gross Domestic Product, refers to the sum of the product of final goods price and…
Q: 2.3: In an economic environment where the initial policy interest rate (ip) and the equilibrium…
A: Monetary policy is a set of actions taken by a central bank to manage the money supply, interest…
Q: Assume that Trinbago is a small country that produces wine and motor vehicles, where motor vehicles…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: cribe 4 differentways the government odf canadahelps facilitate trade with other countries and helps…
A: Trade refers to the exchange of goods, services, or commodities between individuals, businesses, or…
Q: What best describes why higher-income people are more likely to be landlords in terms of tax…
A: A tax benefit alludes to a financial advantage or decrease in tax liability given by the public…
Q: Consider the following steps 1. Celia chooses how much care, z = [0, 1], to take in programming her…
A: The expected payoff, also known as the expected value or expected utility, is a measure of the…
Q: In the table below, you are given data for the country of Sequoia. Exports Consumption Gross…
A: GDP is also known as gross domestic product which is the sum total of values of all finafinal goods…
Q: (Figure: Determining Industry Cost Characteristics) Short-run and long-run supply curves with…
A: The short run supply curve represents the behavior of firms in the immediate term, considering fixed…
Q: If the interest rate goes down, what risk does the bank face in the mortgage market? O More…
A: Banking refers to the activities and services provided by financial institutions, known as banks,…
Q: You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them…
A: Cross-price elasticity for demand of good x with respect to price of good y is calculated as When…
Q: Price 21 20 10.5 10 9.5 0 Market for Pants 100 150 Sup De Suppose a $1 per unit tax is placed on…
A: Imposition of tax on buyers increases the price paid by buyers for the same unit of the good. This…
Q: Wayne's Wiener Wagon Assignment 1. Complete the following table for Wayne's Wiener Wagon. Weenies 0…
A: Total Cost is the sum of both the fixed and variable costs .Fixed cost is independent of the…
Q: Wichita — Farmers in Kansas, the biggest US producer of wheat, are abandoning their crops damaged…
A: Supply refers to the quantity of a product that producers are willing and able to sell at a given…
Q: 1. "If it were not for the law of diminishing returns, a firm's average cost and average variable…
A: As further amounts of an input that is variable get added to a fixed input, the additional output or…
Typed plzzz and Asap
Thanks
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- You are the manager in a market composed of 20 firms, each of which has a 5.00 percent market share. In addition, each firm has a strong financial position and is located within a 100-mile radius of its competitors. a. Calculate the premerger Herfindahl-Hirschman index (HHI) for this market? b. Suppose that any two of these firms merge. What is the postmerger HHI? c. Based only on the information contained in this question and on the U.S. Department of Justice Horizontal Merger Guidelines described in this chapter, do you think the Justice Department would attempt to block a merger between any two of the firms?multiple choice It may but will also consider other factors. It likely will not. It likely will.You are the manager in a market composed of eight firms, each of which has a 12.5 percent market share. In addition, each firm has a strong financial position and is located within a 100-mile radius of its competitors. a. Calculate the premerger Herfindahl-Hirschman index (HHI) for this market. b. Suppose that any two of these firms merge. What is the postmerger HHI? c. Based only on the information contained in this question and on the Horizontal Merger Guidelines described in this chapter, do you think the Justice Department (or FTC) would attempt to block a merger between any two of the firms? Explain(Mergers and Public Policy) Calculate the Herfindahl-Hirschman Index (HHI) for each of the following industries.Which industry is the most concentrated?a. An industry with five firms that have the followingmarketshares: 50 percent, 30 percent, 10 percent,5 percent, and 5 percentb. An industry with five firms that have the followingmarketshares: 60 percent, 20 percent, 10 percent,5 percent, and 5 percentc. An industry with five firms, each of which hasa 20 percent market share
- The two major scooter companies in India, ABC and XYZ, are competing for a fixed market. If both manufacturers make major model changes in a year, then their percentage market share not change. Also, if they both do not make major model changes, their percentage market share remains constant. If ABC makes a major model change and XYZ does not, then ABC is able to take away a% of the market away from XYZ, and if XYZ makes a major model change ABC does not, XYZ is able to take away b% of the market away from ABC. Express this as a 2 x 2 game and solve for the optimal strategy for each of the companies.H7. For q1=120-2p1-p2 and q2=120-2p2+p1, show that the duopolists have incentives to collude as well as find the -joint profit-maximizing price, output and profit and find each firm’s price, output and profit. What is the optimal defection of each firm, is collusion Nash equilibrium? Show in 2x2 matrix. Is it a prisoner’s dilemma?You are the manager in a market composed of eight firms, each of which has a 12.5 percent market share. In addition, each firm has a strong financial position and is located within a 100-mile radius of its competitors.Instruction: Enter your responses rounded to the nearest penny (two decimal places).a. Calculate the premerger Herfindahl-Hirschman index (HHI) for this market.b. Suppose that any two of these firms merge. What is the postmerger HHI?c. Based only on the information contained in this question and on the U.S. Department of Justice Horizontal Merger Guidelines described in this chapter, do you think the Justice Department would attempt to block a merger between any two of the firms?multiple choice It likely will not. It may, but will likely consider other factors as well. It likely will.
- Based only on the knowledge that the premerger market share of two firms proposing to merge was 30 percent each, an economist working for the Justice Department was able to determine that, if approved, the postmerger HHI would increase by 1,800. How was the economist able to draw this conclusion without knowledge of the other firms’ market shares? From this information, can you devise a general rule explaining how the Herfindahl-Hirschman index is affected when exactly two firms in the market merge?Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman index of 2,765. Case’s share of that market was 22 percent, while Fiat comprised just 12 percent of the market. If approved, by how much would the postmerger Herfindahl-Hirschman index increase? Based only on this information, do you think the Justice Department would challenge the merger? Explain.With an estimated market share of 60%, Atlas is the dominant company and the price leader in an oligopolistic steel industry. The remaining market share is distributed equally between ten companies. Suppose that one of those ten companies, Norton, attempts to gain market share by undercutting the price set by Atlas.Calculate the “Four Firm Ratio” and Herfindahl-Hirschman Index “HHI” in the above described market and interpret your answer. What model can best resemble this market? Briefly explain this model. In your opinion, what will be the effect of Norton’s attempt described above on Atlas’s market share: will it increase, decrease, or not affected at all? Justify your answer
- suppose fiat recently entered into an agreement and plan of merger with case for $4.3 billion. prior to the merger, the market for four wheel drive tractors consisted of five firms. the market was highly concentrated, with herfindahl-hirschman index of 2,915. case's share of that market was 13 percent, while fiat comprised just 7 percent of the market. if approved, by how much would the post merger herfindahl-hirschman index increaseanswer the last subquestion please: d. If all firms in an oligopolistic market have similar pricing decisions (all charging high prices or all charging low prices), is this enough evidence to say there is collusion among them? Explain.Suppose that there are two firms in a market, firm 1 and firm 2. The marketis declining in size. The game starts in period 0, and the firms can compete in periods 0, 1,2, 3, ... (i.e., indefinitely) if they so choose. Duopoly profits in period t for firm 1 are equalto 105 −10t, and they are 10.5 −t for firm 2. Monopoly profits (those if a firm is the onlyone left in the market) are 510 −25t for firm 1 and 51 −2t for firm 2. At the start of eachperiod, each firm must decide either to “stay in” or “exit” if it is still active (they do sosimultaneously if both are still active). Once a firm exits, it is out of the market forever andearns zero in each period thereafter. Firms maximize their (undiscounted) sum of profits.What is this game’s subgame perfect Nash equilibrium?