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(a) Economically, when is it best for a firm to outsource or contract-out some part of its production?
(b) Provide an example of a business task or operation that it would make sense to outsource.
(c) Provide an example of a government task that it would be economically efficient to contract-out.
(d) Is there any risk to outsourcing? Explain.
(e) For a task that is already outsourced, could it make sense to bring it back in-house at some future time? Explain.
Suppose that Country B has the same amount of net private saving in Year 1 and in Year 2. However, the government of Country B has a budget surplus of $200 billion in Year 1 and a budget surplus of $100 billion in Year 2. Other things equal, this ten..
You have a system that contains a special processor for doing floating- point operations. You have determined that 60% of your computations can use the floating-point processor. When a program uses the floating-point processor, the speedup of the flo..
Is a monopoly's demand curve more elastic, less elastic, or equivalent to the demand curve of monopolistically competitive firm's demand curve?
Consider a hypothetical economy that produces at its long-run macroeconomic equilibrium at a price level of 100.
Suppose that Erin spend her incomes on two goods, food (X) and clothing (Y), and that her utility function is given by U(X,Y)=.20X2Y2 (The marginal utility for X is .40XY2 and that for Y is .40X2Y ). The prices of food and clothing are $10 and $20 fo..
Could you please explain why long run supply curve can be downward sloping and implication for behaviours of price as demand increases over long run.
Donna buys goods X and Y. She can just afford the bundle X = 6 and Y = 11. She can also afford X = 12 and Y= 8. Each of these bundles exhausts her income. Draw Donna’s budget line. What is the ratio of the price of x to the price of y?
Assuming labour demand is downward sloping and that the labour market is competitive, what happens to national income as a result in immigration.
The graph shown demonstrates a tax on sellers. Which of the following can be said about the effect of this tax?
A firm in Perfect Competition has a Total Cost Function: TC = 6Q^2 - 8Q + 12 with a current P=$6. What is the current Quantity and Profit or Loss? Will firms enter or leave the industry? What will be the long run Price and Quantity?
A profit-maximizing monopolist named Billy faces an inverse demand function described by the equation p(y) = 40 - y and his total costs are c(y) = 7y, where prices and costs are measured in dollars. In the past Billy was not taxed, but now he must pa..
Shortages of resources such as water, food, and building supplies are a problem many communities face after a natural disaster occurs. Some communities have even enacted laws to prevent “price gouging,” the practice of asking very high prices for pro..
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