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1. Economies of scale are one of the most powerful forces in economics. Answer the following questions related to this very important principle of economics:
a. Explain how economies of scale are particularly important to a monopolist, be they real (in reality, there are very few examples of monopoly in the real economy) or hypothetical.
b. Building on question (a.) above, in the event that a new competitor decided to enter this otherwise monopolistic market and building on their natural competitive advantage of economies of scale, what would the embedded monopolist do to thwart the new competition?
c. Are there any economic lessons that a non-monopoly firm can learn from the hypothetical monopolist in the development of its own strategy for building a competitive advantage in the real world in which it operates? Explain.
In a closed economy, what happen to equilibrium interest rate, investment and savings after going from an open economy to a closed one?
Suppose that Coca-Cola is currently paying a dividend of $1.75 per share, the dividend is expected to grow at a rate of 5% per year, and the rate of return investors require to buy Coca-Cola’s stock is 8%. Calculate the price per share for Coca-Cola’..
q. this is a drag-and-drop question. click on the curves below and drag them to a new location on the graph that will
He wants to be 95% confident that he can estimate the time within plus or minus 5 minutes.
Find online the annual 10-K report for Green Mountain Coffee Roasters (GMCR) for its 2012 fiscal year, filed in September 2012. Answer the following questions from the income statement: What were Green Mountain’s revenues for 2012? By what percentage..
q.assume that the price elasticity of demand for cigarettes is .46 in the short run and 1.89 in the long run the income
Explain if rewards are tailored towards individual, group, and / or company performance. Explain how you as HR manager will create an incentive pay program that will motivate employees.
1) What island chain ("archipelago") connects the Northeast Pacific to the Northwest Pacific. What population of humans lives there?
If you were starting a soap business (laundry soap), what strategy would you use to compete with Procter & Gamble and Clorox? How would you reach your target market? How and where would you advertise? We talk about the power of word of mouth-how do y..
Suggest one (1) pricing policy that will enable your low-calorie, frozen microwavable food company to maximize profits.
Macroeconomic equilibrium and the multiplier effect The following graph shows a hypothetical economy in short-run equilibrium at an output level of $400 billion and a price level of 100. Suppose that potential GDP in this economy is $200 billion. Use..
Analyze the business cycle. What are the determinants of aggregate demand? Examine changes in aggregate demand and aggregate supply, using the data from Step 1 and Step 2. How do these changes affect the business cycle?
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