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When McDonalds Corp reduced its price of the big mac by 75 percent if customers also purchased French fries and a soft drink, the wall street journal reported that the company was hoping the novel promotion would revive its US sales growth. It did not within two weeks sales had fallen. Using your knowledge of game theory, what do you think disrupted McDonald's plan?
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
What is the income elasticity? Interpret the elasticity in a mathematic and economic context -- what does this number tell you? Is the own price elasticity consistent with economic principles? Explain.
If the MPC = 0.94, C 0 = 45, I = 150, G = 125, T = 75, X = 50 & IM = 60: Write out the consumption function. Compute the simple multiplier.
What is the cost of producing additional car when 50 cars are being produced? What is the cost of producing additional care when 150 cars are being produced?
An essay on Market imperfection associated with negative externalities.
Use the following data for a firm's output at various levels of employment to calculate: (a) its marginal physical product of labour (MPPL) schedule.
Macroeconomics questions, discuss the short-run and long-run effects, Keynesian model, Distinguish between ongoing demand pull and ongoing cost push inflation.
Given the following predictions for nominal wage increases and productivity growth, state your forecast for inflation (assume this is all the information available to make the forecast).
Prepare a table/graph for inflation in "your country" (use North Korea for the country; if no data is available, use India) for about the latest ten year period for which you have data.
True/False: For each of the following concepts, decide whether it's true or false, and briefly explain why (2-3 sentences). You can also use diagrams if they are helpful. Each correct answer is worth.
You are the manager of 3D Designs-a large company that does graphics work for Disney and other companies. You and your only competitor are contemplating the purchase of a new 3-D imaging device.
The requirement is:- term paper on International Business from economic view point. The topic is effect of corruption on Chinese and Indian economy and how India's IT sector.
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