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Consider a firm with an upstream division producing chips, and downstream division producing computers. Initially, at time 1, there is no outside market for the firm's chips. The firm sets the transfer price optimally at PT=300. This results in production of 400 computers. Later, at time 2, an outside market develops for the firm's chips. The market is willing to pay 600 for the firm's chips. Suppose the transfer price is set optimally at time 2. The firm's downstream division will end up producing fewer computers.
Could you please identify whether it is true, false and uncertain and explain please.
when walmart locates in a smaller town, often the local retailers hardware, clothing and appliance are unable to successfully compete and are driver out of business why does walmart have a cost advantage over its competitor and charge lower prices
The Crank Yankers DVD season two has been a hot seller during recent weeks. An examine of weekly demand shows:
Suppose that a country has a population of 55 million, a labor force participation rate of 66% an an unemployment rate of 5.5% how many people were employed
Explain Deming's "System of Profound Knowledge".In your explanation, state why he developed it, how it ties in to his fourteenpoints, and explain each of the components of the system.
change in quantity of hybrids change in in price of gas 0.25 change in quantity of suvs change in price of gas
If surgeons really have the ability to increase the demand for operations, which kinds of operations will be most affected? Can you think of a way to determine which operations are unnecessary?
Enron executives were charged with numerous counts of corporate fraud and corruption. Among the charges was "insider trading", which involves the trading of a corporation's stock by insiders who may have access to information that the public does ..
Please define and update the so-called TED spread (which we discussed in class) upto recent years. Discuss the main implications of the sudden changes of the TED spread on international lending and borrowing
The Heckscher-Ohlin model assumes that tastes are the same in Home and Foreign. Suppose now that tastes are different in Home and Foreign.
Suppose that a risk-free investment will make three future payments of $100 in one year, $100 in two years, and $100 in three years.
Suppose Ke, the required rate of return, goes up to 12 percent; what will be the new value of Po?
The importance of FDI for economic growth of developing countries in 21st century. The case of Kaz
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