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In the 1990s, five firms supplied amateur color film in the United States: Kodak, Fuji, Konica, Agfa, and 3M. From a technical viewpoint, there was little difference in the quality of color film produced by these firms, yet Kodak's market share was 67 percent. The own price elasticity of demand for Kodak film was -2.0 and the market elasticity of demand was -1.75. Suppose that in the 1990s, the average retail price of a roll of Kodak film was $6.95 and that Kodak's marginal cost was $3.475 per roll. Based on this information, discuss industry concentration, demand and market conditions, and the pricing behavior of Kodak in the 1990s. Do you think the industry environment is significantly different today?
During Dec. 2007 and Dec. 2008, measured RGDP in economy fell by 1 percent as the US economy sank into a recession. Over that same time period total employment in terms of hours worked declined by 3.7 percent
Elucidate unequivocally why the foundation of trade has nothing to do with absolute advantage and only the law of comparative advantage is relevant.
Illustrate what was the effect of these rate reductions on revenue flow into the federal treasury. What impact upon our economy from these individual tax rate reductions.
What are government's fiscal policy options for ending severe demand-pull inflation? Which of these fiscal options do you think might be favored by a person who wants to preserve the size of government?
Suppose after taxation that the consumer is given a payroll tax rebate that happens to be exactly equal to the amount of gasoline tax he pays. Illustrate what will be the consumer consumption of gasoline now and how much will be the amount of reba..
Compute the employment rate and the level of productivity for each year and for each five-year period, compute the percentage change in the labour force, the employment rate and the level of productivity
Analyze the contribution that automatic stabilizers play in making a stable economy. Provide some examples of the automatic stabilizers and use them to illustrate their significance.
The MorTex organization assembles garments entirely by hand even though a textile machine exists which can assemble garments faster than a human can.
Assume you are an aid to a government official deciding on some recently proposed excise tax on the welfare of her constituents.
Write a letter to the editor of your local paper either supporting or criticizing the proposed $500,000 subsidy.
Using indifference curve analysis, explain and show graphically the effects of higher gasoline prices on:
Assume a 2 sector economy (where the two sectors are consumption and investment) where C= $100+ 0.9 Y and I=$50
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