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Sue Ellen works for a large computer company. She expects to work this period and next period, and then retire. Her current employer pays her $50,000/year. A rival firm offers her the same job at a salary of $56,000/year. However, Sue Ellen places a value of $10,000 on remaining with her current employer since she has many friends at her current company and does not enjoy meeting new people. Sue Ellen decides to reject the job offer. How much must Sue Ellen discount future benefits?
Suppose the firms divide the market into two areas of equal size and assign each firm one of the areas. Each firm agrees to sell only in its assigned areas. Will the arrangement generate a successful cartel?
If velocity ?(V) and aggregate output ?(Y) remain constant at $4 and $1,000 billion?, ?respectively, what happens to the price level ?(P) if the money supply? (M) declines from $425 billion to $350 billion?? Originally, what is the price level?
Describe the advantages and disadvantages of acquisitions as a means of establishing a wholly owned subsidiary. Describe the pros and cons of Greenfield Ventures.
Describe the implications Stanley Cavell’s ordinary language philosophy has on democracy and education. Provide an example of ordinary language philosophy. Examine the ideas of mutual reflection and mutual understanding as it relates to cultural diff..
For the practice of price discrimination to be successful, the monopoly must, If a monopoly is maximizing profits
Explain the unemployment rate and inflation rate for your local area and compare it to the national average. Analyze how a discouraged worker will not be represented with the unemployment rate.
If the price of good X decreases by 2.1% and the price elasticity of demand is 0.4, find the percentage change in quantity demanded and the percentage change in revenue. If you want to increase revenue should you increase or decrease the price in thi..
Maintenance costs on a certain piece of equipment are estimated to be $500, $600, $700, $800, and $900 at the ends of years 1, 2, 3, 4, and 5, respectively. The time value of money rate is 8 percent compounded annually.
Let the total welfare gain from the innovation be given by W = V + S. Compute expressions for W for both competition and monopoly.
Imagine that our representatives in Congress have concluded that the economy needs the stimulus of additional government spending, but they have spent several months haggling over what type of spending will be authorized. This is an example of a(n)
Two ?rm’s produce soda: one with a constant MC=$1.00, and one with a constant MC=$0.50. Demand for soda is given by QD = 100 − .5P. For each of the following models of oligopoly competition below, Find the market price, market quantity, each individu..
Write down the T balance for the following scenarios and calculate the total money supply.
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