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Regulated Industries

Depository institution

What is a depository institution, and what types of depository institutions are found in the United States? How do they act as intermediaries between savers and borrowers? Why do they play this role? Some economists argue that deregulated deposit rates combined with deposit insurance led to the insolvency of many depository

The demand for speciality glue is given as follows...

The demand for speciality glue is given as follows: P = 1200 - 6Q, where P is price per 100 pounds of specialty glue produced and Q is the amount produced and sold in hundreds of pounds. The marginal cost of producing glue for the entire glue industry is as follows: MPC = 700 + 2Q. What will industry output and price be in the a

Multiple choice questions

1. Which of these relations is correct? A) APC - APS = 1 B) MPC + MPS = 1 C) APC + MPC = 1 D) 1 + MPC = MPS 2. If supply increases and demand remains unchanged, equilibrium quantity will _______ and equilibrium price will ______________. A) rise, rise B) fall, fall C) fall, rise D) rise, fall

Concentration Ratio

Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 30%. How would you describe this industry? Suppose the demand for the product rises and pushes up the price for the good. What long-run adjustments would you expect following this change i

Managerial Economics

I need help with these questions. Which of the following enhances the ability of waste companies to collude? a) decals on waste receptacles b) high interest rates c) differentiated nature of products d) large number of firms When a worker announces that he plans to quit, say next month, the "threat" of

Antitrust vs. Industrial Policy

Both anti-trust policy and industrial regulations deal with monopoly. What distinguishes the two approaches? How does government decide to use one form of remedy rather than the other?

Homework help

This is the answer I received for posting 30071 below. I need to answer a second part to this respond. An industry with 20 firms but the CR = 80% is called "high concentration", for a concentration ratio of 80 to 100 percent is viewed as high concentration. Government regulators are usually most concerned with industries fall

Value of perpetuity

Suppose that interest rates are 6 percent in the economy and a safe bond promises to pay $3 per year in interest forever. What do you think the price of the bond will be? Why? Suppose that in this economy interest rates suddenly fall to 3 percent. What will happen to the price of the bond that pays $3 per year? (See attachment

Demand Chart

The graph below represents the monthly demand for a specialized laser-cutting tool. Assume that there is only 1 firm in the world that manufactures this laser tool. Its marginal and average cost curves are shown. Answer the questions below based on this information. a)Draw the firm's marginal revenue schedule. b)What is th

Price effects of regulation

The market demand for trucking services is: P = 500 - 0.004Q where Q is the number of units of trucking services demanded at the price P of a trucking service unit. Before trucking deregulation occurred in 1980, the industry priced as a government sanctioned cartel (i.e., as a m