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1. The Arena Corporation, which sells engines, has a uniform value of $500, which is charges all its consumers. But, after its competitors begin to cut their rates in the California market to $400, Arena decrease its price to $400.
a. Does this tend to violate the Clayton Act?b. If the Arena Company had cut its price to $300, might this tend to violate the Clayton Act?c. Suppose Arena Company decides to purchase enough of the stock of competing firms so that it can exercise control over them and see to it that the price-cutting in the California market stops. Is this legal? If not what law does it violate?
2. The demand and supply curves for the Swiss franc are as follows:
Price of franc Franc demanded Franc supplied(dollars) (millions) (millions)
0.80 600 8000.70 640 7400.60 680 6800.50 720 6200.40 760 560
a. Determine the equilibrium rate of exchange for the dollar?b. Determine the equilibrium rate of exchange for the Swiss franc?c. How many dollars are bought in the market?d. How many Swiss franc are bought in the market?
The Business Cycle is the short-term fluctuations in the economy relative to the long-term trend in output; the recurring and fluctuating levels of the GDP growth rate over time.
Three machines are employed in isolated area. They each produce 2,000 units of output per month, the first requiring $20,000 in raw materials, the second $25,000, and third $28,000.
Which of the following is not a condition required for the practice of price discrimination?
Are you in favor of either deficit spending on the part of government or one of a balanced federal budget and budget surpluses?
Kenya is a state that is a part of the African Nation. Talk about the exchange rates and their money supply. Also write about whether or not Kenya has a promising future.
What impact would this have on the Kitty Litter market and the individual Kitty Litter producer in the SR? In the LR? Carefully Explain.
Trade Restrictions Effects on Exchange Rates. Suppose that the Japanese government relaxes its controls on imports through Japanese firm.
When measuring costs, it is important to keep in mind of one of the Ten Principles of Economics: The cost of something is what you give up to get it.
A change in real money supply can result either from a change in nominal money supply through Federal Reserve policy or from a change in the price level.
Assume The Big Enchilada Restaraunt has been offered a 1 year binding lease agreement for $5200/mth on an attractive site. Before the lease is signed, what is the incremental cost per month?
A firm produces 10 units per week at a price of $500 each. With AFC of $100 and AVC $350 per unit, the firm is earning economic profits of $500 per week.
Monica and her father own one of the three automobile tire stores in the city. No other city is nearby. They want do develop a strategy increase sales and market share in their city. What steps can they take?
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