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You are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. In addition to the large number of generic products in your market, you also compete against major brands such as Coca-Cola and Pepsi. Suppose that, due to the successful lobbying efforts of sugar producers in the United States. Congress is oing to levy a $0.50 per pound tariff on all imported raw sugar ---- the primary input for your product. In addition, Coke and Pepsi plan to launch an aggressive advertising campaign designed to persuade consumers that their branded products are superior to generic soft drinks. How will these events impact the equilibrium price and quantity of generic soft drinks?
Which of the following would you expect to decrease both interest rates and exchange rates?
Define strategic planning. How is strategic planning different for international marketing than domestic marketing?
Q1. An accountant finds that the trial balance of his client did not tally and it showed an excess credit of Rs. 69.74. He transferred it to a suspense account and later discovered the following errors.
A price taking firm chooses its inputs to maximize short-run profits. Its Cobb-Douglass production function has the following form: q(L, K) = L^(1/2) K ^(1/3). Set up the profit function in terms of labor only. Another price taking firm chooses its i..
Calculate the currency-to-deposit ratio (cr), and the money multiplier (m) given the above values. Calculate total required reserves (RR), total actual reserves (AR) and the monetary base (MB). Now assume the FED lowers the required reserve ratio to ..
Homemakers are not included in the employment or labor force totals compiled by the Bureau of Labor Statistics household survey. They are included in the working-age population totals. Suppose that homemakers were counted as employed and included in ..
Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $150,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value..
Assuming the most typical shapes of the demand and supply curves, which of the following could lead to an increase in the current equilibrium price for personal computers?
A grandfather decided to put some money in the bank for her granddaughter's education the day she was born. The interest in the bank is 6% per year. The grandfather expects her granddaughter to withdraw $20,000.00 each year on her 18th, 19^th, 20th a..
In the long run, which type of firm may follow a "price leadership": Inelastic long run markets demand is very important for this type of industry to survive and do well in the long run: Firms have excess capacity in the long run under? Under perfect..
The stability of fiscal policy. (Blinder and Solow, 1973.) By definition, the budget deficit equals the rate of change of the amount of debt outstanding: δ(t)=?(t). Define d(t) to be the ratio of debt to output: d(t)=D(t)Y(t). Assume that Y(t) grows ..
Suppose instead that use of the Sonoma county buy local currency is completely voluntary. Who is the most likely to use this currency.
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