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1. How can we measure the opportunity cost of producing a good? Using a bowed outward production possibilities curve between ice cream and hammers, identify graphically the opportunity cost of obtaining an additional hammer.
2. Does economic growth eliminate scarcity? Why
How many people are unemployed according to the Burea of Labor Statistics? What is the unemployment rate according to the BLS?
China's entry into the World Trade Organization in 2001 created more competition between local and foreign firms, and also provided China greater access to the market for exports. What implications do you think the elimination of the quota on rubber ..
Review Porter's 4 competitive strategies and give a real-life company example of which strategy a company is pursuing.
A portfolio of non-dividend-paying stocks earned a geometric mean return of 5 percent between January 1, 2004, and December 31, 2010. The arithmetic mean re- turn for the same period was 6 percent. If the market value of the portfolio at the beginnin..
There are one large and two small car dealerships in a town. The large dealer begins selling cars way below cost in an attempt to drive the small dealerships out of business. Once they are out of business, the large dealership knows it can raise pric..
How has Apple positioned itself to take advantage of unique designs to attract a sufficiently large niche market to surpass the competition in the United States and China? What does the Apple experience tell us about risks associated with strategic a..
An energy company orders metric tons of liquid natural gas that is used at the rate of 1,000,000 metric tons per year. Delivery lead time has averaged 8 days. What is the economic order quantity (in metric tons)? What is the total holding cost for th..
Challenge of any merger that raises the HHI by 100+ points in a market where the HHI is above 1800 before the merger.
A monopolist has two sets of consumers. The demand for one set can be described by Q1 = 5 ? p. For the other set, the demand is Q2 = 10 ? p. The monopolist faces constant marginal cost of 2. Derive the monopolist’s total demand if the two markets are..
The output that maximizes profit is obtained where : Perfect competition is characterized by: If price is greater than average total cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm will:
Suppose Jimmy says that he is willing to give up three apples in exchange for one banana, or give up one banana in exchange for three apples. Either trade is alright with him. Suppose that apples cost $2 and bananas cost $1. What trade, if any, would..
Why do cotton growers spend billions of dollars to dam rivers and transport water hundreds of miles to grow cotton in California deserts?
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