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1. How does a network externality serve as a barrier to entry? Is this barrier surmountable? Provide one example. Make sure you carefully explain your answer.
2. Explain why a firm in a perfectly competitive market charges the market price (as set by the market demand and market supply curve). How is this different to a firm in a monopolistically competitive market?
In addition to reviewing all the course materials, you should view the movie Inside Job, which is a look at corporate accountability regarding the ongoing international financial crisis. Incorporating facts and ideas presented in the course, includin..
Galvanized Products is considering the purchase of a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $100,000. Galvanized Products is planning to borrow 1/4th of the purchase price from a ban..
Fran who is in the 35% tax bracket, recently collected $100,000 on a life insurance policy she carried for her father. She currently owes $120,000 on her personal residence and $120,000 on business property. What would be the tax consequences of each..
Each of the following events will result in either an import or export to be recorded in the current account or the capital account of Vidinland, an imaginary small country in eastern Europe. For each one, say whether it will be a current account imp..
Suppose a local government has a tax digest of $ 500 million and feels it must raise $ 15 million for the operation of the its school and general government. What would be the millage rate? What characteristic of real estate leads to the need for pub..
q. without trade the united states produces 45000 units of clothing and 150000 cans of soda. without trade brazil
Suppose the market for milk. For each of the following events, state whether it affects supply or demand, which direction supply or demand shifts, the effect on price, and the effect on quantity.
The Fed announced in April 2011 to it will continue the ‘quantitative easing' by completing the purchase of government securities by the amount of $60 billion.
show which own-price elasticity of Rohan's Marshallian demand for any good is independent of his income. To show that the income elasticity of his Marshallian demand for any good is equal to 1.
In fall 2013, Apple loaned its sapphire glass supplier $578 million to set up a manufacturing plant to produce the glass for the new iPhone 6. How did the loss of the Apple contract affect fixed cost for the glass supplier? How might this have affect..
When quantity supplied increases at every possible price, we know that the supply curve has
For depreciation, a salvage value of zero was used. Bonnie wants a 15% after-tax rate of return on her investment.
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