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Open today’s issue of The Wall Street Journal and look for an article about new moves being made by a corporation, specifically the decisions that are strategic. At what level is each of the decisions that you identified? Functional/Business/Corporate? Why do you believe this to be the case? What is your assessment of these decisions? Will they be effective? Why? How have you decided this?
Assume that a monopolist has a demand curve given by P=1500-4Q, and TC= 100 + 5Q2 with MC=10Q. Calculate the dead weight loss. Calculate the consumer surplus and producer surplus.
What are the economic justifications of the size premium? In factor pricing models like the intertemportal capital asset pricing model (I-CAPM) or arbitrage pricing theory (APT), it is assumed that exposure to one of these factors represent exposure ..
Suppose you manage a convenience mart and are in charge of ordering products but do not set the price. The home office provides the prices. In your area, the income elasticity of demand for peanut butter is -.05. Due to local factory closings, you ex..
When free trade increases market competition, what happens to the ability of a firm to set high prices? What about when trade restrictions are imposed?
Two ice-cream stands are deciding where to set up along a 1-mile beach. The people are uniformly located along the beach, and each person sitting on the beach buys exactly 1 ice-cream cone per day from the nearest stand. Each ice-cream seller wants t..
Supply-side policy is based on the assumption that people's economic behavior is not affected by taxes. Interest rate differentials can cause rapid fluctuations in short-run exchange rates. In general, speculators tend to make a floating exchange rat..
Suppose Alan’s preferences are described by the utility function: Find the equation for Alan’s indifference curve through the bundle (3, 6).
What is the probable effect of each of the following on the exchange rate of a country, other things being equal? More domestic oil is discovered and developed. Which two of these do you think would have the greatest impact on the exchange rate?
The short-run and long-run effects of this change for the levels of per-capita output, and the growth rates of (total) output and per-capita output.
She has no accounting background. Leonard cannot understand why market value is not used as basis for accounting measurement and reporting. Explain what basis is used and why. What is importance of economic entity assumption.
All around the world, governments to varying degree subsidize education and healthcare. What economic concept justifies these policies? In a short paragraph discuss and use an economic model to show the impact of subsidies on market for education.
What are the two distinguishing properties of a public good? Explain each in one or two sentences. Give an example of a public good.
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