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The car industry is characterised by heavy research and development activity. This activity has a high fixed cost and can only be undertaken by large firms with significant monopoly power. Sometimes the innovations of the car industry spill over into other industries. There is also a great deal of product differentiation, with certain brands enjoying reputation and loyalty.
What are the likely effects of these aspects of the industry on the market structure for High Performance Cars?Examine this industry using the theory and models of industry structure. Should government be worried about any aspect of how an industry with this market structure will perform?
Which of the following would tend to increase AD?
In economics, inflation is considered as a tax. There are also various costs of inflation. What is the inflation tax, and how might it explain the creation of inflation by a central bank? Explain how inflation affects savings and investment.
Michael Walzer asserts that terrorism is wrong because it is an indiscriminate attack on the innocent. If you were an immunity theorist, you would judge an attack by American soldiers on a group of twenty ruthless terrorists who had two noncombatant ..
Suppose that the real GDP of a country is in equilibrium at $480 billion.
Why are large, publicly listed companies much more likely than small businesses to sell financial instruments such as bonds directly to the market, while small businesses get their financing from financial institutions such as banks?
What was the American net international investment position at the beginning of 2019?
If income rises from 1000 to 1800 and consumption rises from 1100 to 1700 the marginal propensity to save.
Suppose that a developing country devotes extensive resources towards improving the education and skill level of the labour force.
A concert ticket costs $30 and a film ticket costs $10. How many tickets of each type will be in Elena's optimal consumptionbundle? Her MRSCF = 3F/2C.
-Calculate the elasticity of labor supply with respect to effective wage rate?
Bill borrowed $10,000 to be repaid in quarterly instalments over the next 7 years. The interest rate he is being charged is 11.76% per year compounded quarterly. What is his quarterly payment?
After reading about the Solow growth model, which concludes that continued economic growth requires continual innovation, and Schumpeter’s dynamic growth model, does the combination of these two models provide an adequate model of technological chang..
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