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Assume a hss reslisef that the farmers of maize are not being adequately compensated fir their efforts by the prevailing market prise of maize.
The government is therefore considering the idea of introducing a price floor to ensure that farmers get minimum guaranteed price above the market equipment price.
What could be the possible effects of such a policy on farmers, mealie meal market, maize marketing board and the government?
In 1982, 13 percent of 21 year olds were attending university. In 2004, 26 percent of 21 year olds were attending university. What effect will this increase have on Canada’s economy?
Does your Ford Motor Company appear to be charging the same prices for its products that are being marketed to specific countries?
Explain why the mixed strategy is a logical Nash equilibrium, even though intuitively it seems like the worst thing that two friends could do. Explain what a best-response function is.
Illustrate what principles should guide policy makers. Should they cut spending and raise taxes to reduce the national debt over time. Or does the level of the national debt really matter.
Suppose that annual income from a rental property is expected to start at $1,000 per year and increases at a uniform amount of $50 each year after the first year for the 10-year expected life of the property. Assume an interest rate of 10%/year. Assu..
Monopolistically competitive firms try to differentiate their products in order to eliminate substitutes. What are the comparable measures that can be taken in labor markets to decrease the number of “substitutes” for some types of labor? What are th..
Use the following information for the next 10 questions. You should draw a graph that depicts the situation below and use your picture to answer the questions. Assume that wages and prices are sticky and that we start at a long run equilibrium. Assum..
In year 1 and year 2, there are two products produced in a given economy, cars and beef. Suppose that there are no intermediate goods. In year one, 200 cars are produced and sold at $15,000 each, and in year two, 250 cars are sold at $16,000 each. Ca..
Success of a company investing and operating in a foreign country depends on the competitive advantage of the company. The entry strategy could be technology based, quality based, or cost based. Explain and comment.
An industry consists of three firms with sales of $310,000, $725,000, and $405,000. Calculate the Herfindahl-Hirschman index (HHI). Calculate the four-firm concentration ratio (C4).
What macro-environmental factors external to the company should Southwest Airlines be most concerned about? How do these factors affect Southwest Airlines? Explain.
1) Draw an "aggregate supply-aggregate demand" diagram that shows an economy suffering from high levels of unemployment.
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