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Intel made large loyalty payment to HP in exchange for HP buying the most of their cips from Intel instead of rival AMD. AMD sued Intel under the antitrust laws, and Intel settled the case by paying $1.25 billion to AMD.
The town council of the suburb of Happy Valley has concluded that to breakeven from a fiscal point of view, a new housing unit must have a taxable value (v*) of $250,000. Land in Happy Valley currently sells for $40,000 an acre ( r). Using the rule o..
How does a government spending and tax policy act as automatic stabilizers for the macro economy? Given the logic of the automatic stabilizers, why should we be concerned about deficit cutting efforts during a recession? What types of lags in fiscal ..
q.the bolt-making industry currently consists of 20 producers all of whom operate with the identical short-run total
There are two firms in a market for commercial dry suits. The market demand curve is P = 4,500 – 2.5Q. Firm 1 has a total cost curve of C = 1,000 q with zero fixed costs, while Firm 2 has a total cost curve of C = 1,500 q with zero fixed costs. If th..
Suppose a chemical factory discharges waste products into a river resulting in significant damages to a local fishery. The marginal damage and the marginal abatement cost (MAC) are given by:
What are vertical equity and horizontal equity? Consider what is meant by the efficiency of a tax system?
Working at home (preparing meals, taking care of children is not counted as part of GDP. Such work also doesn't constitute employment in labor- market statistics. Calculate the measured employment and unemployment and the measured labor force for eac..
1. According to a website of an installment lender, borrowers in California could be eligible to receive a loan of $2600 and pay back by making fixed monthly payments of $767.96 for nine months. Calculate the yield to maturity of this loan. Answe..
Mining is proposed for a wilderness area that provides two benefits: recreation (due to backpacking opportunities) and biodiversity (there are endangered wildlife and plants). Which discount rate makes the best case for mining? What is the present va..
Conduct a SWOT analysis of Bailey's. This analysis should identify at least three strengths, three weaknesses, three opportunities, and three threats.
Marvin has the utility function U(N, B) = 4N1/2 + B. If Marvin is initially consuming 64 units of nuts (N) and 10 units of berries (B), then what is the largest number of berries that he would be willing to give up in return for an additional 17 unit..
Would you prefer to have $100 today or $100 one year from now? Why? How can compounding build wealth over time? How can compounding increase debt over time?
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