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GRADUATE SCHOOL
JOSÉ RIZAL UNIVERSITY
80 SHOW BOULLEVARD, MANDALUYONG CITY
MANILA, 2010c
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1.c The demand function Px = 20 - èx
 
The supply function r Sx = 12 + èx
a)c What is the equilibrium Px and èx?
º
b)c If the demand shifted to PX = 30 - èx?

What would be the new equilibrium Px and èx if the supply function


remains the same?
 
If the supply function shifted to Sx = 6 + èx, what would be new
equilibrium Px and èx
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2.c The cross price elasticity of product X and Y is Ex1y = -0.38 for Py $10, the èx =
30 units, if the price of y increase to $12, what would be new èx?
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3.c Why do you think the U.S. department of Justice blocks mergers which will
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mirrors from independent suppliers?c

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jeans by out bidding several other bidders an e bay internet auction, does this
situation best represent producer-producers, consumer-consumer rivalry or
producer-consumer rivalry, explain!c
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6.c What is the amount that you will pay for an asset that would generate an income of
$1Ö0,000 At the end of each of five years for ten yearsc

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a.c Calculate the Herfindahl-Hirshman index (HHI)
b.c Based on the U.S. department of justice͛s merger guidelines described in the text,
do you think the department of Justice would block a horizontal merger between
two firms with sales of $200,000 and $ß00,000? Explain?

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a.c What is the firm͛s optimal output?
b.c What is the firm͛s optimal price?
c.c What are the firm͛s maximum profits?
d.c What adjustments should the manager be anticipating?

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