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A private college adds a small café to its building to cater to the needs of its own students. The total cost of the facilities for the café is $100,000. After a year of operations the college determines that operating the café is interfering with its primary business of educating students. A group of enterprising? business students offer to purchase the café facilities for $50,000. The college balks at the idea because it had paid $100,000 for the facilities. The college spends $10,000 advertising the café for sale hoping to get an outside buyer willing to pay much more than the students and operate the café on campus. When no outside offer was forthcoming the students increased their offer to $55,000. Should the college take the student offer? Why or why not?
Antitrust laws were created in order to maintain competition and protect consumers. There have been several high profile Antitrust cases in the last few years (e.g. Microsoft). Think of a recent example. Do you think the right decision was made
Compute and contrast the international financial organizations that play major roles in NAFTA and Latin-American Integration Association
What did you learn? Why is it important? How do the Economics concepts we just covered impact the economy, you and your family, your friends and your employer?
In recent years, consumption spending by households has accounted for about 70% of the total spending (aggregate demand) in the U.S. economy.
Explain the trade-offs between any three of these options. In other words, what will you gain, and what will you have to give up if you choose each of the three options?
Why does the assumption of independence of risks matter in the examples of insurance What would happen to premiums if the probabilities of houses burning were positively correlated Can you think of a situation where they might be negatively corr..
1) An important reason why economies at an early stage of development tend to operate inefficiently is a) they tend to be dominated by the agricultural sector, where productivity is usually low. b) they tend to have authoritarian governments that sti..
Find the equilibrium interest rare and what happens in the FED ( federal Reserve Bank) increases the money supply to $1,200
A sketch of this firms W/MRP labor market diagram is shown below. The profit maximizing point is labeled (point A) and the blue shaded area is the profit. You should be comfortable handsketching the graph below using the information from table A.
Describe the position of India with respect to the comparative advantage it holds in gems and jewellery, software services, and petroleum.
Suppose that the supply and demand for oil. Starting from a point where supply and demand are in equilibrium, describe with use of a diagram how a global recession is likely to affect equilibrium value and quantity of oil bought & sold.
Illustrate elastic or inelastic. Make confirm you continue to use the correct terms when considering changes in price
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