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An interesting example of strategic behaviour comes from a 1997 article about Microsoft’s investment in Apple (New Straits Times, 1997). The article is included in the Required Readings list. Facing tough anti-trust scrutiny from government agencies, Microsoft provided financial support to Apple in order to ensure Apple’s survival and, therefore, to ensure that competitiveness in the industry remains. Moreover, the partnership with Apple provided an additional market for Microsoft’s products – the MS Office and the IE products were to be bundled with the MAC OS as one of the conditions for this financing. Discuss this case in the context of market structure and strategic behaviour. What market structure do these firms operate in? Why did Microsoft need to preserve competitiveness in the industry? What was Microsoft afraid of in the event that Apple did not survive?
the elasticity of demand for home computers is -2.5 the elasticity of demand for business computers is -.90 and the
describe the business environment in the city or town that you live in. you should explain what the current economic
tammie makes 150 a day as a bank clerk. she takes off two days of work without pay to fly to another city to attend the
Liquidity Preference Theory
Greg wants to have $50 000 in five years. The bank is offering five-year investment certificates that pay 8 percent nominal interest, compounded quarterly. How much money must he invest in the certificates to reach his goal?
Many automobile manufacturers routinely advertise the safety of their cars, yet airlines generally do not mention safety in their advertising. Can you suggest an explanation for this difference
A project proposal for a new product will require a buildup of $50,000 of inventory in year 0 before sales are started. Associated with this, accounts payable will also increase by $20,000 in year 0.
Small firms can discover the abilities of their workers more quickly than large ones because they can observe the workers more closely at a variety of tasks. Does it then make sense for people with high abilities to go to small firms
Describe the competitive environment within the industry. Is there a dominant firm? Are the other firms follow or actively compete? How do they compete? (For example, by using price, advertising, quality or some other variable.)
In Costa Rica, only a few beaches remain that are nesting grounds for sea turtles. Some of those beaches have communities situated near them; traditionally, the local people collected the turtle eggs and sold them for their purported aphrodisiac p..
In Kessy's old kitchen, he could bake 10 cookies or mix 15 glasses of lemonade in one day. Now Kessy has a larger oven and refrigerator. How does this impact his production possibility frontier A) It increases his production possibility frontier. B..
You've been appointed by an unprofitable firm to determine whether it should shut down its unprofitable operation.The firm currently employs 70 workers to produce 300 units of output per day.
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