Explain why this must be the case

Assignment Help Macroeconomics
Reference no: EM13329373

Consider two firms X and Y produce identically tasting cold drinks.In order to increase the demand for its cold drink, firm Xincreases its advertisement outlay. However the advertisingdoesn’t increase its demand in the long run. Explain why this must be the case.

Reference no: EM13329373

Questions Cloud

Determine the fair present value of the bond to justify : BSW Corporation has a bond issue outstanding with an annual coupon rate of 5.8 percent paid quarterly and four years remaining until maturity. The par value of the bond is $1,000.
Define and contrast the following pairs of terms : Define and contrast the following pairs of terms: dot-com and bricks-and-clicks; intranet and extranet; B2C and B2B.
Explain what volume of solution contains 5.0 g nacl : The concentration of NaCl in solution is 0.25 M. What volume of solution contains 5.0 g NaCl.
Find coefficient of kinetic friction between floor and box : A cardboard box slides along a wood floor with an ini - tial velocity of 5.00 m/s. what is the coefficient of kinetic friction between floor and box
Explain why this must be the case : Consider two firms X and Y produce identically tasting cold drinks.In order to increase the demand for its cold drink, firm Xincreases its advertisement outlay. However the advertisingdoesn’t increase its demand in the long run. Explain why this must..
Identify and explain the benefits nd risks of debt financing : Touring Enterprises, Inc., has a capital structure consisting of $18 million in long-term debt and $7 million in common equity. There is no preferred stock outstanding.
Explain in the stock room find solution of hcl : In the stock room you find a 12.0 M solution of HCl. How many mL of this solution should you dispense to make your diluted solution
Find the differential equation describing the motion : A particle of mass 2 units moves along the x-axis attracted toward the origin by the force whose magnitude is numerically equal to 8x. find the differential equation describing the motion
The managers are having success building self-directed : You have just attended a manager’s meeting about establishing self-directed, high-performing teams. The company is concerned because some of the managers are having success building self-directed, high-performing teams while others are not.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Does the price of shoes change by more in the short run

Suppose the government institutes a new sales tax on shoes, which are produced by a competitive constant-cost industry.

  What are the producer and consumer surplus

Find the equilibrium price and quantity (2) Find the price elastic of demand and the price elasticity of supply at the equilibrium in part (1) (3) What are the consumer surplus, producer surplus, and total welfare at the market equilibrium calculated..

  Will the policy have a larger effect on smoking 1 year

Studies indicate that the price elasticity of demand for cigarettes is about 0.4. if a pack of cigarettes currently costs $2 and the government wants to reduce smoking by 20%, by how much should it increase the price

  Does everyone share in the gains and costs equally

Trade between the United States and another country in any one of the following areas: customer support services, garments, medical services, or technical products. Discuss these points: a. How is this trade arrangement beneficial

  Cause of yield curve

Explain how each of the following would cause the yield curve to shift if between now and next year:

  Explain outside analysts expect the growth rate of earnings

A share of the common stock of the company currently sells for eight times current earnings. Management and outside analysts expect the growth rate of earnings and dividends for the company to be 7.5 percent per year. Calculate the cost of equity ..

  Question on equilibrium situation

Describe what happens to price of a bond that pays a fixed percent of the face value every year when interest rates in the economy rise.

  Illustrate this using a graph showing a decrease in supply

Analyze why the prices of gasoline rose so high over the summer. Was it because OPEC cut back production and the number of people driving was more? Illustrate this using a graph showing a decrease in supply coupled with an increase in demand, resulti..

  Illustrate rate of growth in fuel costs justifies going

Illustrate rate of growth in fuel costs justifies going ahead with the insulation plan? Make sure that the rate of growth and the discount rate are aligned in terms of periodss.

  Find the present worth of the investment

Current machines have a 5 year life and were purchased 3 years ago at $1500000 - Invest $1 Million in upgrade costs to extend the life of the machines for another 5 years - Savings in labor resulting from upgrade, $300000 per year in 1st year doll..

  What is the marginal propensity to consume in this economy

What is the marginal propensity to consume in this economy?  What is the multiplier in this economy?  What is the equilibrium level of GDP in this economy?

  Estimated elasticity of demand for new brand cars

Illustrate what is the estimated elasticity of demand for new brand cars with respect to the price of gasoline.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd