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The profitability of the leading cola syrup manufacturers PepsiCo and Coca-Cola and of the bottlers in the cola business is very different. PepsiCo and Coca-Cola enjoy an 81 percent operating profit as a percentage of sales; bottlers experience only a 15 percent operating profit as a percentage of sales.
Using the above case, perform Porter's Five Forces analysis that explains why one type of business is potentially so profitable relative to the other.
What advice would you give to the CEOs of the other bottlers that might increase their operating
1) What is a digital signature? 2) Describe Elliptic curve cryptosystems.
Numerical fill in the blank question: Suppose a perfectly competitive firm has the marginal cost function of MC = 3Q.
How did the TARP Program act as a measure for America to fix the Unemployment rate during the Global Financial Crisis?
Suppose that Brazil was experiencing unusually high inflation. What would be an appropriate fiscal policy measure for the Brazilian government to take in order
What are the costs of inflation? Which of these costs do you think are most important for the U.S. economy? What are your shoe leather costs of going to the bank? How might you measure these costs in dollars? How do you think the shoe leather costs o..
Suppose there are two consumers, A and B. The utility functions of each consumer are given by: UA(X,Y) = X*Y UB(X,Y) = 2X + Y The initial endowments are: A: X = 4; Y = 2 B: X = 4; Y = 6. What is the marginal rate of substitution for consumer A at the..
Hulk goes to the gym 20 times a month. His income is $1000 per month and his visits to the gym cost $4 per visit. For simplicity, assume all other goods that Hulk consumes besides the gym costs $10 each. Assume Hulk exhibits diminishing marginal rate..
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated p..
A firm has a production function represented by: q=L^(.75)K^(.25) Find a function for how much capital and labor a firm should hire to produce a given level of production in terms of the price of labor, w, and the price capital, r. Suppose w=15 and r..
Determine the quantity demanded, the quantity supplied, and the magnitude
The World Bank projects that the world's population will increase from 7 billion today to 8 billion in 2025. World output today is roughly $80 trillion. What is global per capita income today? $ What will per capita income be in 2025 if the world's e..
Then you inherited a piece of commercial real estate bringing in $12,000 in rent annually.
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