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1. U.S cigarettes makers face enormous punitive damage penalties after losing a series of class-action lawsuits that heaped penalties amounting to several hundred billion dollars on tobacco industry. In spite of the huge penalties, The Wall Street Journal reported; "The damage (to cigarette makers) is generally under control". What action do you suppose the cigarette companies took to avoid bankruptcy? Why did this action succeed? Explain.
2. After two quarters of increasing levels of production, the CEO of Canadian Fabrication and Design was upset to learn that, during this time of expansion, productivity of the newly hired sheet metal workers declined with each new worker hired, Believing that the new workers were lazy or inefficiently supervised, the CEO instructed the shop foreman to "crack down" on the new workers to bring their productivity "cracking down" can increase worker productivity at Canadian Fabrication and Design?
3. At the management luncheon, two managers were overheard arguing about the following statement: "A manager should never hire another worker if the new person causes diminishing returns". Is this statement correct? If so, why? If not, explain why not?
Suppose Bank of Canada (BOC) purchases $100 million worth of government bonds from a chartered bank. Assume BOC imposes 5% legal reserve requirement ratio to the banking system.
A monopolist faces the demand curvep =11 - Q , where Q is measured in thousands of units. What is the monopolist profit maximizing price and quantity? What is the profit?
Suppose that Demand and Supply curves for coffee bean is given by-What value of t maximizes Government's tax revenue?
Suppose two identical firms produce widgets and they are the only firms in the market. Find the Cournot-Nash equilibrium.
Cindy gains utility from consumption and leisure. The most leisure she can consume in a week is 168 hours.
Full employment income is estimated to be $11,000. The current interest rate is estimated to be 4.178 recent. While last year total business investment spending was $900.
The annual demand for coffee by the U.S consumers is Q = 250 - 10P. Compute the lost consumer surplus?
Write down the effect on the real wage and hours worked in the short run.
Obtain the market clearing price and quantity. Under the assumption of profit and maximization , how much output should the representative firm produce?
Characterize each of the following statements as true or false, and explain your answer.
List and explain the sources of expenditures in economy by focusing on the 4 major sectors of economy.
What is the opportunity cost of going to a doctor to be examined for skin cancer? Would eliminating research reduce or increase the cost of U.S. health care?
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