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How does price elasticity of demand affect economic profit for a company? What are some realistic tactics a company would use to make sure price elasticity is well maintained?
The government raises taxes on business profits causing real investment to fall. This occurs because businesses find expansion in plant and equipment less attractive when profits are reduced. The reduction in real investment decreases short-run aggre..
Sales plays an important role in allowing a business to maintain long-term relationships with customers. Sales force structures can be critical in allowing companies to distribute their products to their customers effectively. Typical sales force str..
Calculate the Herfindahl-Hirschman Indexes for 2006 and 2011. What information does this index tell you about changes in the industry? How does this information differ from the four-firm and eight-firm indexes?
An industry has two firms, each of which produces output at a constant unit cost of $10 per unit. The demand function for the industry is q(p) = 1,000,000/p. Give the best-response function for each firm. What is the Cournot equilibrium price for thi..
Suppose the market demand for a good is described by the demand function P = 160 - 2Q. It follows that the total revenue function relating the total revenues (TR) to the quantity sold (Q) is:
How do foreign exchange markets get information and how important is the information when it is in time? What are the procedures and practices of banks?
What is the purpose of a margin call?
The demand for flowers is P = 240 - 2Q and the MC is MC = Q. a) Find the competitive equilibrium in this market.
Suppose the U.S. government encouraged new teachers to take jobs in under-performing schools by paying the new teachers a $20,000 bonus. These teachers would be exemplifying the economic idea that A) people are rational. B) people respond to economic..
Using the supply curve shifters (SPEND) explain whether each of the following will increase or decrease the supply of cell phones. Tell whether the supply curve shifts to the right or to the left.
Consider a two-period economy with a single commodity (say leisure): x_1 is the consumption of leisure in period 1, and X_2 is the consumption of leisure in period 2. When Peter evaluates consumption streams, he cares only about the best time in his ..
President-elect Donald Trump has proposed several economic policies. On spending, Mr. Trump intends to modernize the U.S. infrastructure, including the transportation system and education facilities, and to strengthen the military. Are these economic..
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