Question

T/F/U. Stores that offer to accept their competitor’s coupons and/or prices are participating in oligopolistic behavior.

T/F/U. You are more likely to shirk when you interact with the other party frequently. Explain why this is or isn’t the case using an original example.

T/F/U. Colleges and Universities should take advantage of celebrities’ kids by charging them higher tuition rates

T/F/U. Two firms produce various quantities at various prices. At prices less than $456, no firm produces anything. At $500, firm one produces 8 units; firm two produces 0 units. At $550, firm one produces 16 units and firm two produces 10 units. At $600 firm one produces 24 units and firm two produces 25 units. These two firms are in a constant costs industry. Please draw a supply curve consistent with this problem AND your solution

T/F/U. Profit for a company where MC=MR has a total cost of $156 at a quantity of 9 units sold and a total revenue of $196=$-8.56. Show your work to get full credit.

T/F/U. In the presence of negative externalities prices are distorted such that the market price is too low. Please draw and explain an equilibrium diagram that supports your answer.

T/F/U. Command and control regulation is a great solution to solving issues that arise from externalities. In your answer, use an example consistent with the best and worse ways to use this solution.

Answer 1

1. The given sentence is false, since the stores will not accept competitor coupons. In Oligopoly firms integrate with each other and provide offers or serve coupons not necessarily competitors.

2. The given statement is false since we would not shirk ourselves from whom we meet regularly. Rather we would volunteer ourselves for help. A typical example is that of colleagues who meet everyday in office. If one friend request another person to execute something for us, we would not shy away.

3. The given statement is false since it would be against law and ethics. Hence charging celebrity kids higher tuition rates is not an ethical act.