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Imagine that you own a pharmacy in northern Virginia. One of your competitors launches a "We will not be undersold" campaign, which promises consumers 150 % of any difference between its prices and the advertised prices of other pharmacies. Evaluate the social issues in your community as well as the economic culture that is influencing this type of pricing competition. Develop and describe a microeconomic model that is responsive to the service demands of your market. Based on your conclusions, how would you react to this situation, and with what business strategy would you approach this? How might you apply game theory to the creation of your strategy?
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated p..
Suppose the government issues debt to finance its fiscal deficits. The interest rate in the government debt is r=5% and suppose that output in the US shrinks at rate n = -1%. Then:
Explain the assumptions of [markets must have to be competitive and efficient] related to market failures of Imperfect competition, imperfect information
What is current process capability as measured by Cp. What is current process capability as measured by Cpk.
Given the nominal interest rate of 17?% and the expected inflation of 13?%, then the value of the real interest rate is ___ ? with the real interest rate equal to 3?% and the expected inflation equal to 4?%, then the value of the nominal interest rat..
You were told that a certain cash flow sequence started at $3000 in year 1 and increased by $2000 each year. How many years were required for the equivalent amount worth of sequence to be $12000 at an interest rate of 10% per year?
To what extent does Apple engage in related diversification? To what extent do they engage in unrelated diversification?
Business firms become pessimistic about their future earning capacity as do banks. Nominal interest rates fall during recession.
Draw hypothetical curves for money demand and money supply; and analyze each of the following cases showing how interest rates and Money in circulation.
One shortcoming of the Bureau of Labor Statistics Index of Labor Productivity is that it:
Suppose the demand for labor market is given by Labor = 408−2wage and the market supply is given by Labor = 10wage. Suppose a minimum wage is placed on wages that sets the wage at $50. Find the quantity demanded and supplied, and the amount of unempl..
Suppose an economy has overbuilt and suffers from excess capacity. A recession ensues due to firms cutting back on expenditures. Is deficient demand more easily remedied by monetary or fiscal policy? Explain
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