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Before the merger, each of the separate newspapers was losing about 10 million per year. What forecast would you make for the merged firms profits?
Explain.
b. Before the merger, each newspaper cut advertising rates substantially.
What explanation might there be for such a strategy?
After the merger, what prediction would you make about advertising rates?
Illustrate what factors will increase or decrease the level of international capital mobility between one nation and the rest of the world.
What is the equilibrium level of income? Compute disposable income, consumption and aggregate demand.
In his semi yearly testimony to the Senate banking committee past summer Alan Greenspan commented on the recent Fed funds rate hike in late June 2004;
What are two possible fiscal policy solutions for the problem? Using a Keynesian approach, you should be able to get numerical solutions. More points are given for numerical solutions.
As a near-term solution, its engineers recommend a cooling technology known as an absorption chiller, which uses plain water as a refrigerant and semiconductors that cool down when charged with electricity. B&E is considering two options: Option 1..
Suppose you can invest in education that costs $10,000 each year for two years in a row. After that, you will receive additional income in the form of a higher salary of $15,000 for three years. If the interest rate is 4%, is this a good investm..
Now suppose that the monopolist fears entry, but thinks that other firms could produce the product at a cost of $15 per unit (constant marginal and average cost) and that many firms could potentially enter. How could the monopolist list attempts t..
Suppose the U.S government decides that the incomes of dairy farmers should be maintained at a level then how much surplus milk will be produced as a result of this policy.
By how much and in which city is the hotel room cheaper.
Elucidate the phenomenon of market foreclosure. Specifically, explain how a vertical merger may "substantially lessen competition or tend to create a monopoly".
Assume the United States government is planning changes in economic and social policy to decrease wage inequality.
What is the share of Household A's income spent on education? Does this household consume more or less education if EF = 20 is provided by the government? What is the share of Household B's income spent on education?
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