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Some people (e.g Hayek) argue that decentralization of economic decisions in the economy lead to an efficient resource allocation. What differences exist within the firm that make the link between decentralization and efficiency less clear? Explain.
A property is sold for $530,000 with selling costs of 7% of the sales price. The mortgage balance at the time of sale is $150,000. The property was purchased 5 years ago for $385,000. A) What is the adjusted basis for this property? B) What is the ta..
Explain how information systems help companies develop competitive strategies using the Value Chain Model, the concept of synergies, core competencies, and Porters Competitive Force Model.
Calculate the annualized inflation rate of the price of meat over the periods: (a) May-July 1923, (b) July-September 1923, (c) October 1923,(d) November 1923.
A firm’s market power decreases if the price elasticity of demand for its product. The higher the price elasticity, the
Consider a household that consume only two goods – food and “other goods” – that are each normal goods The income of the household is $120, the price of food is $10 and the price of “other goods” is $20. How much food and “other goods” does the house..
The area is composed exclusively of apartments and is populated by low-income residents. The people who live in the area tend to stay in that area because
The Midterm Exam is open book, open notes. The maximum time that you can spend in the exam is three hours. If you have not clicked the Submit For Grade button by then, you will be automatically exited from the exam. In the exam environment
1. List two arguments for allowing importation of foreign prescription drugs. 2. List two arguments against the importation of prescription drugs.
In 1990, the ratio of Japanese to US labor productivity in the steel and consumer electronics industries were estimated to approximately 1.4 and 1.12. We will assume that (a) these are the only two industries and labor is the only factor of productio..
Why would high transaction costs or imperfect information tend to prevent price-taking behavior?
Suppose for a given consumer X is an inferior good and Y is a normal good. Focusing on the income effect, show that an increase in the price of X will cause the consumer to “buy more” X (that is, show that the income effect is positive when the price..
Distinguish between a balance-of-payments surplus and a balance-of-payments deficit in terms of payments of official reserves.
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