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Many states provide firms with an "investment tax credit" that effectively reduces the price of capital. In theory, these credits are designed to stimulate new investment and thus create jobs. Critics have argued that if there are strong factor substitution effects, these subsidies could reduce employment in the state. Explain their argument. How does this affect the labor market?
When international hostilities increase, the United States government will sometime use trade sanctions instead of military action.
Residents of a town take turns driving a water truck to a fire hydrant in a nearby town. They fill the truck with water and then haul it to a storage tank. Last year truck fuel and maintenance cost $3180.
Assume the following was overheard at the water cooler: "I think our medical device company should take advantage of economies of scale by increasing our output, thereby spreading out our overhead costs."
Would warehouse operators insist on owning their own trucking companies What coordination and control problems and contractual hazards would these companies encounter What organizational form would warehouse operators and truck hauling companies a..
What topic or topics of interest have you found at the Markkula Center and can you apply one, two or all three moral theories to the cases?
Explain in one or two paragraphs why innovation is at the heart of creating and sustaining competitive advantage for firms. You need to mention the interrelationships between innovation and productivity
How do you know that the firm represented in the graph above is a purely competitive firm and to maximize profits, this firm will produce at what output level and explain why this MR=MC position is the profit-maximizing position for any firm.
Which are the most important hypotheses that follow from this theoretical approach to geographic mobility. Discuss how higher proportional and progressive income taxes are likely to affect the mobility decision.
When a firm focuses on increasing profitability by customizing the firm's good or services so that they provide a good match to tastes in different national markets, it is pursuing A Localization strategy.
Suppose the Demand for baseballs is given by Q = 200 - 8P. a) What is the price elasticity of demand when P = 6? b) At what price will Total Revenue be maximized? c) What is the firm's Marginal Revenue when the price is $10?
What is the group preference according to the plurality rule and what is the group choice according to the Borda count rule
Marginal benefit and marginal cost functions and explicit costs of using market-supplied resources entail an opportunity cost equal to the dollar cost of obtaining the resources in the market.
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