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A grocery store has estimated that each plastic bag it uses costs $0.10 to produce. This amount cannot be lowered any further. The chain hires you to figure out how to encourage customers to use fewer plastic bags. what strategy would you recommend?
A monopolististically competitive firm:
The company believes that the tractor units can be sold at the end of five years of use for 25% of the original purchase price. What is the maximum purchase price the company can pay for the tractor if it's after tax MARR is 12% per year?
Illustrate what about burning all but one of his ships made to a utilize, powerful strategic commitment for Cortes in Mexico.
What are the effects of taxes on price level? Why? In your opinion, do taxes lead to efficiency or inefficiency? How does a free market eliminate a surplus?
In a price-fixing agreement amongst two oligopolists, each seller's best strategy would be to maintain the agreement, as it would leave both of them better off. The smaller the share of the fringe firms in an oligopoly market, the smaller will be the..
Suppose that you are given the information about the spot exchange rate, annual interest rates, and the forward exchange rates between the US Dollar against Japanese Yen and Turkish lira at the given dates in Table 2. Suppose that a US investor wi..
Insurance and social policy. You have been hired by an insurance company to help them launch a new product which would pay for long-term care in a nursing home for people at an average cost of $150,000/year. Who would you expect would buy your policy..
Suppose that the current exchange rate is 200 yen per dollar, the U.S. interest rate is 6%, the Japanese interest rate is 4%, and there is no risk premium. What do you expect the exchange rate to be a year from now?
Why manufacturer guarantees the computer for one year only. The cost of the extended warranty is $150. Analyze this proposition using the concepts you learned in the module on risk analysis.
Why do you think China is now a favor location for so much high technology manufacturing activity? How will China increasing involvement in global trade help that country? How it will help the world develop economies? What potential problems are asso..
What is the equilibrium price and quantity (P* and Q*) in the market for oranges with the following conditions? An event in Florida changed the supply of oranges. Demand did not change. The new supply equation is Q=5+P what is the new equilibrium pri..
explain why the actual increase in M-1 will be smaller than that indicated by the over smplified multiplier.
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