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Assume that a competitive firm operates in an environment with no sunk costs of production. If the firm is currently in a long run equilibrium position, what will happen if there is a decrease in the price of a complement to the good produced by this firm. Explain the short run and long run response to this change.
Discuss the costs and benefits of obtaining a graduate degree - Long Term Investment--How about Ethical bankers for a change class.
Lehman Brothers, AIG, Fannie Mae, Freddie Mac and Washington Mutual. Explain the relationship between these companies. Explain in your own words what happened with these companies which caused an international financial crisis.
Illustrate graphically and numerically why moving from the equilibrium quantity of 2 fireworks to the efficient quantity of 3 fireworks produces a potential.
Explain how theory of comparative advantage relate to the need for international business. Explain how the product cycle theory relates to the growth of an MNC.
Suppose an individual lives two periods. In period 1 she works full time and makes $100. In period 2 she enters partial retirement and makes $20. She can borrow and save at the constant, risk-free interest rate r.
Dunkin Donuts raises the price of its French Vanilla coffee by 15%. The demand for Dunkin Donuts glazed doughnuts will change by what percentage and in what direction?
Relative to managers in more monopolistic industries, are managers in more competitive industries more probable to spend their time on reducing costs or on pricing strategies?
A public-interest group supports the subsidy, arguing that it helps consumers and producers alike. Economists oppose the subsidy, declaring that it leads to an inefficient level of output. In your opinion, which side is correct? Explain carefully.
Using the table below, show and explain how Mexico has the comparative advantage in phones.
Suppose now that you expect a drop in demand that would shift it to be:
Economies of Scope) Distinguish between economies of scale and economies of scope. Why do some firms produce multiple product lines, while others produce only one?
Why would Warehouse Electronics be unable to reveal the name of the manufacturer when it advertises its television sets for an unusually low price?
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