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a) Assume the rice industry is perfectly competitive. Starting from long run-equilibrium, suppose that there is a decrease in rice demand. Explain what happens in the short run and the long run to the rice market and to each existing rice firm.
b) Discuss why a firm in perfect competition will not charge a price above or below the market price.
If investor retained earning with same expected rate of return, what will be the EPS next year?
The manufacturers of R.C. Cola, with 2.1% market share in the soft drink industry, recently launched a new advertising campaign describing their brand as a "hip alternative" to "corporate colas" like Coke and Pepsi. Why don’t they simply try and gain..
A CFA charterholder is the Fund Manager for a non-profit organization. During a presentation regarding the restructuring of their investment portfolio's asset allocation, the Head of the Finance Committee questions the manager. As part of his resp..
Consumer spending during holiday seasons affects the aggregate demand (AD) in the economy. AD drastically declines during serious recessions. Explain what President Roosevelt might have been trying to achieve, using the model of aggregate demand and ..
During the recession of 2008–2009, many workers who lost their jobs were unable to afford to move to a new job in a new city and pay rent or buy another home because they could not sell the home they were in that still had mortgages. This was because..
when the assembly plant will be closed (at the end ofYear6). If the firm'sinterest rate is 10%, calculate the PW of the revenue stream.
This is where the story that Country (A) broke all the financial rules begins to fall apart. In a lot of ways, the IMF's intervention was typical. Country (A) sharply reduced government spending and increased interest rates all the way up to 18 perce..
What's the difference between micro-economics and macro-economics?
Illustrate what will happen to the equilibrium quantity also price of a product in a competitive marketplace when the increase in demand exactly offsets the decrease in supply.
Discuss how each of the following will affect the market clearing price and quantity in each market. Discuss how the supply and /or demand curves will shift in the following cases (if at all) Incomes rise and the good is a normal goods.
Find out the aggregate economic effects of the combination of the shock to the economy and the government's response to it.
explain why a rise in the price of gasoline is likely to have more of an effect on consumers than a rise in the price of strawberry milk shakes.
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