Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1. Let's investigate the effect of industries with long run durable goods. (I'm going to make up numbers to make the calculations straightforward, but it is worth remembering that this dynamic is at play in any industry with large fixed costs that are sunk.) A piece of high speed packaging equipment that is used to packaged bottles of pharmaceuticals costs $10 million. Lederle Labs buys the piece of equipment for cash. Let's assume further that the machine will last forever (this is not literally true, but when I worked at Lederle we had some equipment that was over 50 years old). Now assume that due to a redesign an equipment manufacturer has found a way to produce the packaging equipment for only $8 million.
a. TFU and explain: Lederle, and other firms that use the old piece of equipment, will stop using the old piece of equipment and buy the new piece of equipment.
b. If Lederle decides it no longer wants to package pharmaceuticals (it is primarily a research and pharmaceutical manufacturer; it can outsource the packaging), how much will it be able to sell the old packaging equipment for?
c. There exist pharmaceutical packaging specialist firms. Some of these firms borrowed the funds to buy the old packaging equipment. As new entrants to the market adopt the cheaper packaging equipment the old firms can no longer compete because the entrants are able to charge lower prices. Some of these firms are forced out of business, and sell off their old equipment. How does this dynamic of bankruptcy and liquidation affect the profits of the firms that bought the cheaper packaging equipment? Please explain.
d. Please explain the similarity between this example and the airline industry over the last 20 years as many firms were forced into bankruptcy (especially with regard to the durable airplanes).
Use the following Taylor rule to calculate what would happen to the real interest rate if inflation increased by 7 percentage points.
If a price floor benefits producers, why does a price floor reduce social surplus? Because the losses to consumers are greater than the benefits to producers.
Developing a brief summary of endogenous and exogenous growth theories. Analyzing the impact of government policy on the long-term growth rate of an economy.
Suppose the expected inflation rate last year was 2% but the actual rate turned out to be 3%. How much unanticipated inflation occurred?
Tom works a 12 day. 6 hours are no incentive and the rate is $20 per hour. He also completes 16 tasks that are incentive based and rate is $15 per hour. How much did Tom make in his 12 hour shift what is his combined hourly wage?
assume that the drug company can negotiate with the us and foreign governments and thus tries to implement the two-tier
draw a foreign exchange market diagram for u.s. dollar against euro euro. illustrate and explain how each of the
Provide reasons for believing in the accuracy or inaccuracy of sensory information and discuss the roles of "nature" and "nurture" with regard to the interpretation and evaluation of sensory data.
Elasticity suppose the weekly demand function for a product is given by p = 100e-0.1q where p is the price in dollars and q is the number of tons demanded.
After two quarters of increasing levels of product, the CEO of Canadian Fabrication & Design was upset to learn that, during this time of expansion, productivity of the newly hired sheet metal workers declined with each new worker hired.
A soap producer has two types of customer, A and B. Each will buy at most 1 pound per week. Type A customers will pay at most $6 for it, and Type B will pay.
Monetary policy is an effective way to increase demand, if you're the sort of economist that believes the government should meddle in the economy. In an paragraph, thoroughly explain how monetary policy affects each of the four components of aggregat..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd