Michael Lioy Final Exam Managerial Economics 1. a. If consumers suddenly have more disposable income‚ they will be willing to spend more on an apartment. Prices will rise (outward shift of the demand curve) and there will be a higher equilibrium point with supply. b. Taxes have a negative effect on consumer spending and the demand of apartments (inward demand shift). There will also be a lower equilibrium price with the apartment supply. c. Assuming that we are using real world prices‚ $200
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interference‚ regulation‚ or subsidy” (“Free”) by the Gale Encyclopedia of U.S. Economic History. It is an ideology which many government officials agree with‚ especially Republicans. However‚ this system makes it too easy for one company to have a monopoly over a whole industry since their antitrust laws are not strict enough‚ and there are not many regulations restricting overbearing competition‚ which negatively impacts many small businesses while greatly profiting a few large corporations. For example
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internet browsers as well by bundling the programs together and preventing PC manufacturers from making other software available to computer buyers. Again‚ Microsoft’s behavior toward its rivals was unethical. Microsoft tried to create and maintain a monopoly with its Windows operating system and other programs associated with it‚ which was not fair to its market competitors. They were indirectly forcing computer buyers to use only Microsoft products which
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Industries are classified into four different market structures. They are perfect competition‚ monopolistic competition‚ oligopoly and monopoly. Each of these has different characteristics regarding the number of firms involved to the type of product they make. Different methods and restrictions are used to maximize profits in all markets of the economy. Brand management and advertising are two tools that firms used to differentiate their products. The main objective of brand management is
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expanding globally? Solution: Around 1990’s‚ there were many changes both on political and economic front which actually change the working conditions for all the companies in different industries including Telefonica which was a state owned typical monopoly company in national telecommunication sector in Spain. Some of the political changes are as under: The government privatized the company. There were many deregulation happened in the Spanish Telecommunication Market. Some of the changes in the
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is often said they only gave back to improve their image and to have their names live on forever. Rockefeller controlled more than 95% of the world’s oil market. His Standard Oil Company was the monopoly of the oil market. That is where he also got the title a robber baron‚ from his oil monopolies. He used his intelligence to find a way to refine oil. But once he got enough money raised‚ he found a way to control all of the oil industry. Instead of having to deal with the middle men in his business
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large and small business. The decision to regulate interstate commerce grew mostly out of the rebate‚ and long-haul‚ short-haul discriminations of the railroads. The growing feeling that the business were running their businesses only to end in a monopoly is led the Congress to
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In a public enterprise economy‚ the government has the power to nationalize any or all industries which can lead to devastating consequences. One the countries famous for doing this was the Soviet Union. Joseph Stalin‚ the then dictator of the Soviet Union instituted two domestic policies that would eliminate any capitalism in Russia. He would institute rapid industrialization and the collectivization of agriculture.This would be known as the Five Year Plan. Stalin wanted to change all private owned
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Econs 101 In this current era of globalization that is rapidly changing the way mankind live on a daily basis‚ ‘survival of the fittest’ is expeditiously becoming the mindset in each working man or woman. ‘Survival of the fittest’ in this context means that every working person is enduring the corporate world‚ doing anything to feed their rice bowls. This may be due to the current economic slowdown that is currently happening in different parts of the world that runs on various economic systems
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Key for Homework 5 Question For a monopolist to sell more units of output‚ Answer the price must be increased. the price must be reduced. demand must become more elastic. the other competing firms must sell fewer units. Question In a monopoly‚ the market demand curve is Answer the same as the demand curve facing the firm. the summation of all the individual firm s demand curves. nonexistent. the marginal cost curve above minimum average variable cost. Question A monopolist maximizes
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