The single-price monopoly equilibrium is Pareto ineffcient and leads to a positive deadweight loss. However, monopolies also have certain benefits in terms of technical progress, innovation, unique products/services and fostering of entrepreneurship. Do you agreee with the view that monopolies should be heavily regulated by the government ? Or should governments intervene only as and when necessary ?

Q: Use the following setting for questions 1-3. Consider the following static game: CR L 3,1 0,0 5,0 T…

A: When a simultaneous move game got one Nash equilibrium, or a sequential move game got one subgame…

Q: What two rules does a perfectly competitive firm apply to determine its profit maximizing quantity…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: There is only a single drug to treat Diwakar’s disease. This is an example of a          Threat of…

A: With there only a single drug to treat the disease, the firm has market power to exploit prices to…

Q: 4. You can spend $5 for a snack and you would like to have two servings of black cherries. When you…

A: Given:  Budget = $5 Increase in the price for black cherries from $2.50 to $2.99 per serving You…

Q: Provide one example of an investment option for households. Then, analyze this option based on its…

A: Investment is the process of capital formation where a minimum amount is expected in return over…

Q: Consider the following scenario: c = currency-deposit ratio = 0.20 rr = required reserve ratio =…

A: Given: Currency deposit ratio (C) = 0.20 Required reserve ratio  (r) = 0.10 Excess reserve ration…

Q: When using the Fed model to diagnose the economy, if the output gap has shifted without much…

A: In an economy, real interest rate is the rate at which the value of money changes over time,…

Q: 1. Find the interest paid on a loan of $2000 for 1 year at a simple interest rate of 7% per year.

A: Simple interest is a straightforward method of calculating how much you owe on a loan. The concept…

Q: When Open Market Operations result in an increase in the Monetary Base Interest rates fall Bond…

A: In an economy, when Central Bank used open market operations to increase the monetary base, it…

Q: 7. How can expectations affect demand and supply in the real estate market?

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Suppose China can produce two goods, cloth and food and has three factors of production labor  (L),…

A: Factors of production  Factors of production refer to the resources which are used while…

Q: 11.Critical Discussion of the Simple Stock flow model 12. Vacancy Rate - definition, calculation,…

A: Since you have asked multiple questions, we will solve first question for you. In case you want any…

Q: Marjorie Randon Hershey argues in the textbook that “Democracy cannot function without parties.”

A: Democracy is a form of ruling a nation or political system where all the citizens have equal right…

Q: If the marginal propensity to save is 0.4 (or 40%) and the government plans to spend $4,000 in the…

A: Given MPS = 0.4 Increase in government spending = 4000 $ Expenditure multiplier =  1 / MPS = 2.5

Q: Consider the benefits as well as the problems associated with a reproductive policy such as China’s.…

A: Consider the benefits as well as the problems associated with a reproductive policy such as China’s.…

Q: What can be the implications of a positively sloping indifference curve?

A: Indifference curves are those curves that represent combinations of two goods that give the same…

Q: ent regions of the LM schedule. The following are your choices of answers. Wi g to your choice. -…

A: IS-LM model implies the short term equilibrium achieved in both goods market and money market…

Q: Consider a lottery L1 that gives income £7,000 with probability 1, and a lottery L2 that gives…

A: "In economics, utility represents satisfaction which a consumer gets from a commodity or a service.…

Q: why is that quality delivery and price expectations of the customer should be considered in the…

A: When talking about transformation process, it refers to the process of substitution one or more…

Q: B) Is this price elastic or inelastic? Should the boosktore charge more or less to maximize revenue?…

A: The measure that depicts change in quantity being demanded of a good with respect to its price level…

Q: A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost…

A: Answer: A perfectly competitive firm maximizes its output where its marginal cost equals the…

Q: Bell-land's economy had an unemployment rate of 3% then the economy went into a recession and the…

A: Okun has demonstrated the existence of a reciprocal relationship between unemployment and economic…

Q: Using the demand function that you estimated in the previous problem  Calculate demand and total…

A: Since you have asked a multi-part question and according to the policy we can only solve the first 3…

Q: Question 1 The mayor of a village is considering to build a public park. There are 5 people living…

A: A Vickrey–Clarke–Groves (VCG) mechanism is a generic truthful mechanism for achieving a socially…

Q: What is the balance in an account at the end of 10 years if $25,000 is deposited today and the…

A: Compound interest is computed on both the principal and the interest earned over a period of time.…

Q: The general city population is set to benefit in travel-time savings from a municipal road project…

A: The information given is as follows:-   The savings in present worth time = $35500000 Initial…

Q: 1. The price of milk has increased from $2.00 to $2.20, causes quantity to decrease from 10 gallons…

A: Elasticity of demand states that change in demand due to change in price , and by using percentage…

Q: In the economy there is a decrease in profitable business opportunities for firms. As a result, in…

A: In the bond's market, bonds are supplied by firms and bonds are demanded by households to make…

Q: A consulting company estimated market demand and supply in a perfectly competitive industry and…

A: Answer: (A) zero

Q: A Singapore's demand for China's imports will shift up by 10%, leading to a new equilibrium at point…

A: RMB stands for Chinese Yuan  SGD stands for Singapore dollar. Current exchange rate is SGD / RMB =…

Q: You extract approximately 5,000 observations from the Current Population Survey (CPS) and estimate…

A: "Regression" comes from "Regress" which means to return (to something). In that sense, Regression…

Q: Draw a well-labeled graph that illustrates the steady-state of the Solow model with  population…

A: * SOLUTION :-  (1) From the given information the answer is provided as below as follows ,

Q: In a perfectly competitive labour market, firms are wage takers and the marginal cost of labour…

A: When talking about perfectly competitive labour market, it is the market place, where wages are…

Q: The South African economy has been struggling for a number of years. This has (in part) led to…

A: One of the legal procedures to settle disputes related to employment, wages of labor are sorted out…

Q: A new highway is to be constructed. Design A calls for a concrete pavement costing $85 per foot with…

A: A new highway is to be constructed, there are two designs Design A and Design B. Design A Cost in…

Q: What type of an externality is depicted in the graph above and why? b. Suppose the graph refers to…

A: a. The above graph shows the "Negative Externality" because in the given graph it can be seen that…

Q: Calculate the percentage change in real GDP in each of the years shown. (Hint: The percentage change…

A: Real GDP is a macroeconomic proportion of the worth of economic results adapted to price changes .…

Q: The United States and the countries of Europe are trading partners. If the average income of dollar…

A: Here, it is given that the average income of US citizens has increased when US and Europe are…

Q: 15. Assume that the real income of a developing Island increases from $120,000 to $160,000 from 2005…

A: The real income per capita of a country is defined as the real income divided by the total…

Q: Explain how oil plays a role in the price of the good (fertilizer)

A: Oil is utilised for a variety of purposes in almost all sector. As the cost of commodities rises,…

Q: (a) "Hyperinflation in Venezuela is the currency instability in Venezuela that began in 2016 during…

A:

Q: 8. An economy is endowed with = 100 units of capital and L= 200 units of labor. Two goods are…

A: K=100 L=200 M = Km0.5 * Lm0.5  T = KT1/3 * LT2/3

Q: When airfares between Santa Rosa and Los Angeles averages $69, the quantity consumed is 42,500…

A: Dear student, you have asked multiple sub-part questions in a single post and have not mentioned…

Q: Imagine a scenic canyon, visited by many local people as well as tourists from beyondthe local area.…

A: For making a comparison, we will need following things - 1. number of tourists coming to visit…

Q: A person is planning for saving he has 10 more years of service,he would like to deposit 20% of the…

A: Given; Amount invested= 4000 Annual increase in deposit= 500 Time, n=10 years Interest rate= 15%

Q: ECONOMY-How a civilization makes money through the buying and selling of goods and services. (Some…

A: The answer is given below

Q: Why is monetary policy chosen over fiscal policy as the preferred tool for stabilization policy

A: Monetary and fiscal policy are the two most well-known techniques for affecting a country's economic…

Q: 2. Based on your answer in 1, identify two key features of long run equilibrium and determine the…

A: Answer: The two key features associated with long-run equilibrium are given as: (1). In the long…

Q: According to Ferdinand Tönnies, urbanism corresponds to __________ (gemeinschaft/gesellschaft).

A: When talking about the difference between gemeinschaft and gesellschaft according to Ferdinand…

Q: discussing the effect of the Covid-19 pandemic on the GDP of South Africa during the height of the…

A: The COVID-19 pandemic has hit the whole world including South Africa extremely close to a genuine…