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Suppose Devesh decides to expand his (100% self-owned) Indian-based software consulting firm by opening an office in Palo Alto, California (in Silicon Valley). Devesh wants to continue to manage the operation in Chennai, but he hires a friend, Anton, from his MBA program to manage the Palo Alto office. Devesh will continue to serve some Silicon Valley area clients who he's had since starting the business, in addition to all his other global clients. Who is the agent and who is principal in the Palo Alto office, and why? [Answer only with regards to Devesh and Anton; do not include any other hypothetical employees at the firm.]
Ginny and Lucia are debating the use of coupons by grocery stores. Ginny says, "The use of coupons in grocery stores represents a means of price discrimination.
Suppose that after hurricane Irene, the average income in Cape Charles, Virginia decreased by 14%. In response to this change in income, suppose the demand for steak in Cape Charles decreased by 4%. What is the income elasticity of demand for steak?
Suppose that in 1960 Joe’s grandfather had a starting salary of $20,000 per year. In 2013 Joe graduated from college, got a job, and had a starting salary of $40,000. You need to know the inflation rate in each of the two years to figure out who is b..
Assume that the currency-deposit ratio is 0.5. The Federal Reserve carries out open-market operations, purchasing $1 million worth of bonds from banks. This action increased the money supply by $2 million. What is the reserve-deposit ratio?
The federal government has imposed a new tax on car alarms. Assume that the tax is physically collected from sellers. a. What effect will this tax have on the equilibrium price and quantity in the market for car alarms?
Elucidate the most likely reason the city council in New York City consistently denies licenses to independent van drivers selling rides to the public.
The yield curve is the graph that shows relationship between interest rates on bonds and default risk on bonds with different rating. True/false explain
1. Suppose the total cost of producing 10,000 tennis balls is $30,000 and the fixed cost is $10,000.
Is there a gain from trade for the foreign country under the H.O. Model? Explain (you may use a graph to illustrate your answer)
The city of Joslyn has three sources of revenue, borrowing, proprietary income from running the local power utility, and taxes. If it recieved $10 million from running the electric power utility and borrowed $40 million, how much did it collect in ta..
Suppose Dell computer Company operates in a perfectly competitive market producing 5,000 computers per day. What is total cost to decrease and profits to increase.
Suppose the price of capital in the restaurant industry decreases. Explain how the decrease in the price of capital affects the demand for labor in this industry. Be sure to explain both the scale and substitution effects.
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