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Please explain the following questions with examples and theoretical support.
a) In what way does the notion of comparative advantage help to explain that production possibilities curves are bowed outward (the principle of increasing opportunity cost)? Explain your answer in the context of the trade-off between drainpipes and butter.
b) Explain how the long-run market supply curve for a perfectly competitive industry depends on factor prices.
Researchers have found that during the last recession, when income fell by 6 percent, many fast-food restaurants saw their sales increase by 8 percent while the sales of soda fell by 12 percent in grocery stores.
in what way the US trucking industry exemplified the capture theory hypothesis of government regulation prior to the passage of the Motor Carrier Act of 1980 and the result of hte passage of the Motor Carrier Act in 1980.Determine whether the Justi..
A certain engine lathe can be purchased for $390,000 and depreciated over three years to a zero salvage value with the SL method. This machine will produce metal parts that will generate revenues of $260,000 (time zero dollars) per year.
What is the consumer surplus [loss] associated with the merger and what was the profit before the merger? after? increase? How does the consumer loss compare to the increase in profit?
Laws of supply and demand
They decide how much the percentages of taxes its going to be and they also have restrictions for any new competitors.
The replacement of a planing machine is being considered by the Reardorn Furniture Company. (There is an indefinite future need for this type of machine).
Businesses are the: Sellers in the factor market and buyers in the goods market. Buyers in the factor market and sellers in the goods market.
Explain how an understanding of the innovation funnel might influence a companys view of research and development?
You are the manager of a large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months. Following are the average negotiated prices for each month and quantities sold ..
A 50-kilowatt gas turbine has in investment cost of $40,000. It costs another $14,000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The operation and maintenance expense for this turbine is $450 per year.
Calculate the premerger Herfindahl-Hirschman index (HHI) for this market and suppose that any two of these firms merge. What is the post merger HHI?
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