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Last month, you assumed the position of manager for a large car dealership. The distinguishing feature of this dealership is its "no-hassle" pricing strategy; prices (usually well below sticker) are posted on the windows, and your sales staff has a reputation for not negotiating with customers. Last year, the company spent $2 million on advertisements to inform customers about its "no-hassle" policy and had revenues of $40 million. A recent study from an ad agency indicates that for each 3 percent increase a TV advertising expenditures, a car dealer can expect to sell 12 percent more cars, but that would take a 4 percent decrease in price to generate the same 12 percent increase in units sold. Assuming the information is correct, should you increase or decrease your firm's level of advertising? Explain. Show all calculations and provide the reasoning as clearly and concisely as possible.
If the average person drinks two bottles of water per day or uses 5 gallons per day in getting that amount of water from the tap. what are the present worth values of drinking botled water or tap water per person for 1 year.
Many controversial issues in public finance concern when a central authority should allow markets to work and when it should intervene. Generally we think of the government as the central authority, but it could be a university as well.
A company considers the following investment projects. Both projects involve the purchase of machinery with a life span of five (5) years.
As an employee of World Bank you've been asked to research the needs of a country with a particular economic concern.
Explore Thomas Paine's theory (in "Common Sense") concerning the idea that mankind is naturally equal and that government should reflect this state of equality. How strong is Paine's argument? Is this a reasonable idea that can be applied in the..
Use the expenditure approach to comput GDP. Use the income approach to calculate GDP.
The demand for coffee is assumed to be P = 15 - Q (units don't matter here.) The domestic supply of coffee is P = 2 * Q. The world market price of coffee is 5. Using graphs, show who gains and who loses and by how much (both for losers and winners..
Explain how might federal deficits crowd out private domestic investment. How does this crowding out affect future living standards.
Using the perfectly competitive labor demand and labor supply model, what would happen, all else equal, to the real wage and the number of workers in each of the cases below: A. There is an increase in the amount of physical capital as a result of po..
Provide five negative consequences to British living standards during early industrialization. Provide five explanations for why Britain industrialized first.
Here's the topic: Compare and contrast society during the early Renaissance in Europe to contemporary society. Your paper is to be 70-80% original and 20-30% resourced (documented via turnitin.com). Details and milestones follow.
1. How does the interest rate effect explain the slope of the aggregate demand curve? 2. Explain and illustrate how the short-run and long-run equilibrium levels of output and the price level are affected by successful efforts by the government ..
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