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The automobile industry is one of the industries seriously affected by the recession that began in late 2007. General Motors and Ford are among the companies affected by this economic slowdown. They responded, among other measures, by downsizing and undertaking layoffs in order to reduce cost. Discuss the market structure these companies operate in with specific assessment of degree of competition. Discuss income and price elasticities of demand for cars made by these two companies.
With regard to global warming policy, describe, in a short paragraph, the importance of: Discounted costs and benefits. Public goods.
It is estimated that the annual sales of an energy saving device will be 20,000 the first year and increase by 10,000 per year until 50,000 units are sold during the fourth year. Proposal A is to purchase manufacturing equipment costing $120,000 with..
What is the future worth of an equal quarterly payment series of $2500 for 10 years if the annual interest rate is 9% compounded monthly?
Andrew appoints Matthew to be his agent for a period of 2 years. After 6 months, Andrew meets with an accident after which he permanently losses his capacity to understand things going on around him. This terminates the contract automatically. But Ma..
Assuming that no currency leakage occurs, how much will the bank be able to lend to its customers following the Fed's purchase?
The behavioral functions are given as follows. C = 20 + 0.8(Y − T); I = 14; G = 20; T = 10; IM = 0.5Y; X = 0.1Y*; Y* = 100where Y is domestic income; Y* is foreign income; C is consumption; T is tax; I is investment; G is government spending; IM is i..
What do Card and Krueger find regarding the effects of increasing the minimum wage on employment? What is a possible problem with the study? Tell me an economic story that would explain their results.
Select one market segment, and describe in one or two paragraphs what features the cell phone might have in order to be attractive to this segment.
If inflation was the most significant problem facing the economy, what would be the appropriate monetary policy response?
the number of hours per week supplied to a particular market by three individuals at various wage rates. Compute the total hours per week supplied to the market.
Using supply and demand and competitive analyses, explain what happens to a pharmaceutical company’s revenues and profits from an individual drug once it loses its patent protection. Then identify at least one strategy the company can use to mitigate..
Two rms sell identical products and compete as Cournot (price-setting) competitors in a market with a demand of p = 150 - Q. Each rm has a constant marginal and average cost of $3 per unit of output. Compute each rm's best response function. Plot eac..
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