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Why would Apple create a shortage to increase the demand when their products are in demand even before they are released. It is true that when a new iPhone is released, there are sometimes shortages, but could there be a logical explanation for that? Think about the complexity of an iPhone or other electronic products like the gaming consoles. Why might a company release a new technically complex product on limited basis as its initial release.?
In the United States, the average hourly earnings of production workers in 2007 were $17.45 per hour. The national minimum wage was $5.85 per hour. Assume that the minimum wage represents what a worker receives for "raw labor". Using these data, calc..
Suppose you have the following demand and supply schedules: Qd = 900-10p+2Y and Qs= -50+25P where Qd and Qs are quantity demanded and supplied, respectively, Y is average income (in 1000s) in the area and P is the price of the good. Suppose Y=50. Fin..
Many small boats are made of fiberglass, which is derived from crude oil. Suppose that the price of oil rises. Using diagrams, show what happens to the cost curves of an individual boat-making firm and to the market supply curve. What happens to the ..
(Bond valuation) A $1,000 face value bond has a remaining maturity of 10 years and a required return of 9%. "The bond's coupon rate is 7.4%. What is the fair value of this bond? (Required return for a preferred stock) Sony $4.50 preferred is selling ..
In "Of Ethics and Entrepreneurship: The Richard M. Devos Story," the authors compare the structure of Amway to McDonalds, stating which of the following as a similarity?
Calculate the growth rate of nominal GDP between 2011 and 2012? e) Determine the growth rate of real GDP between 2011 and 2012?
Suppose we are examining the market for 240-foot industrial wind turbines. Consumers (buyers) of these wind turbines use them to generate electricity. For this analysis, we are interested in the demand for wind turbines and the supply of wind turbine..
What is happening to the US real exchange rate in each of the following situations? Explain.
Assume initial equilibrium in the domestic automobile market. using supply and demand analysis explain what will happen to both the equilibrium price and quantity if the following happens: You hear on the news that a major technology breakthrough for..
Suppose that the cost of eradicating polio from a society of 1,000 persons is $5 per person. Also suppose that only two persons in that society will benefit from that policy, and the benefit to each of those persons is $2,000. Then what is the social..
Assume that the wholesale skim milk market is perfectly competitive. Suppose demand is described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there are no price controls, what would be the equilibrium quantity?
We manufacturer automobiles given the production function q = 5KL where q is the number of autos assembled per eight-hour shift, K is the number of robots used on the assembly line (capital) and L is the number of workers hired per hour (labor). If w..
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