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An interesting example of strategic behavior comes from a 1997 article about Microsoft’s investment in Apple (New Straits Times, 1997). The article is included in the Required Readings list. Facing tough anti-trust scrutiny from government agencies, Microsoft provided financial support to Apple in order to ensure Apple’s survival and, therefore, to ensure that competitiveness in the industry remains. Moreover, the partnership with Apple provided an additional market for Microsoft’s products – the MS Office and the IE products were to be bundled with the MAC OS as one of the conditions for this financing. Discuss this case in the context of market structure and strategic behavior. What market structure do these firms operate in? Why did Microsoft need to preserve competitiveness in the industry? What was Microsoft afraid of in the event that Apple did not survive?
The muffler on your car suddenly needs repair, also there are only two automobile repair shops in town.
Imagine you are an international monetary fund official going to a country whose export earnings are not able to pay for imports. The government has requested a loan from the IMF. In which areas would you recommend the government to cut: education, s..
Which are the top 5 lines of business of SAP on latin-america and the ones with the highest growth potential, again support the reasons you selected them with figures.
The private marginal benefit associated with a product's consumption is PMB=360-4Q and the private marginal cost associated with its production is PMC=6Q. Furthermore, the marginal external damage associated with this good's productions is MD=20. Cal..
If we think about a model over time (dynamic), would depletion (production) from a non-renewable resource, we wouldn't have a traditional, static supply curve that is completely based on price. Would the classic demand curve still apply?
As an inflationary gap is eliminated through an economy's self-correcting adjustments process,
If the U.S. interest rate, adjusted for people's expectation of inflation, increases sharply relative to the rest of the world, then
Suppose the government decides to increase taxes by $40 billion in order to increase Social Security by the same amount. Explain how will this combined tax-transfer policy affect aggregated demand at current prices.
Economists argue about the potential benefits and cost of diversification. For example while diversification can certainly help company to promote new products at the same time through the merger of two firms it can be more expansive to develop commu..
During the Self-Determination Period, Federal agencies have:
Construct a PPF for a country that produces food and video games and faces increasing opportunity costs. Show how the PPF changes given the following events.
Your income is $10 and you buy sodas for $1 apiece. One day a local bully starts demanding that you buy him a soda for every soda you buy yourself. Therefore, it now costs you $2 to get a soda. Illustrate the bully’s effect on your budget line. Illus..
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