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2. Suppose that the cost function for both the entrant and an incumbent is
C(q) = f + cq.
(a) Is this technology characterized by economies of scale? What is marginal cost and how does it compare to average cost?
(b) Suppose that postentry the incumbent can commit to charge p = c.Will there be entry?
Choose a macroeconomic issue of current interest for which you can find two editorial or op-ed columns from national or international newspapers or magazines that take differing positions on the issue.
What factors amount for the rapid growth of the world trade since the second world war? Who are the major players in international trade today? Besides China and Japan, what other Asisan nations play signifcant roles in international trade?
Suppose Ke, the required rate of return, goes up to 12 percent; what will be the new value of Po?
Suppose one of the suppliers to Seattle Health System offers tersm of 3/20, net 60. a. When does the system have to pay its bills from this supplier b. What is the Approximate cost of the costly trade credit offered by this supplier
Suppose that when the interest rate on loans is 16 percent, businesses find it unprofitable to invest in machinery and equipment. However, when the interest rate is 14 percent, $5 billion worth of investment is profitable. At 12 percent interest, a t..
For a developing country to increase, it needs capital. The major source of capital in most nations is domestic saving, but the target of stimulating domestic saving usually is in conflict with the government policies targeted at decreasing inequalit..
Illustrate how critical issues such as process formation, communication, communication channels and personal values may affect a team's structure and success.
Good W and Y are made with intermediate goods A & B. The market value of A is $10 and the market rate of B is $13. The market value of W is $23, and the market rate of Y is $4.
During 2003, Company A and Z made the following identical purchases in the order shown, Each firm sold 400 units but A fimr uses LIFO inventory costing and Z Company uses FIFO inventory costing.
To invest in upgrades to your company’s heating , you borrow $165,000 from a local bank. If the bank asks you repay the loan in 15 equal annual installments of $19,500, determine the bank’s annual interest rate on this loan transaction.
Suppose that the interest rate is 5%. Which of the following statements are true and which are false?
According to a study, the price elasticity of shoes in the United States is 0.7 and the income elasticity is 0.9a. Would you suggest that the Brown Shoe Company cut its prices to increase its revenue b. What would be expected to happen to the total q..
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