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The answer to Economies of scale
How would you explain the situation below?
You are the owner of a small bank in a state that is considering allowing interstate banking. You do not like this because it will be possible for the large money center banks in Washington, Las Vegas to open branches in your banks geographic market area. While the states' reasoning believes that the benefits to consumers of increased competition, you believe that economies of scale could force you out of business. Explain how economies of scale (if large economies of scale in fact do exist) could force you out of business in the long run?
Suppose you bought a bag of groceries at Food Lion this past September for $46.54. Calculate the price of a similar bag of groceries in 1999 prices if the CPI
Media Corp. has determined that its customer base is divided into two groups: sports fans and news junkies. There are one million sports fans and one million news junkies.
Compute the cross-price elasticity of demand between goods X and Y at the given prices.
Explain the difference among a price floor also a price ceiling. Provide a situation in which a price ceiling may be used.
Explain the influence that transferable property rights versus non-transferable property rights, has on individual decision making.
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.
Briefly discuss the methods traders use in attempting to evade the difficulties they face in markets that involve "Lemons".
Find the equation of the new demand curve for Chevrolets. What is the relationship between D C and D' C ? What explains this relationship?
Illustrate what other business decisions are impacted as well, and how. Explain.
Elucidate how managers can reduce their firm's financing cost.
Whenever a beer company rise its advertising budget 18 percent, the demand for its beer increased 28 percent. What is the advertising elasticity for the company's product.
Elucidate which project should be accepted if the required rate of return for the projects
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