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1. During the early days of the Internet, most dot-coms were driven by revenues rather than profits. A large number were even driven by "hits" to their site rather than revenues. This all changed in early 2000, however, when the prices of unprofitable dot-com stocks plummeted on Wall Street. Most analysts have attributed this to a return to rationality, with investors focusing once again on fundamentals like earnings growth.
Does this mean that, during the 1990s, dot-coms that focused on "hits" rather than revenues or profits had bad business plans? Explain. (Chapter13- Problem 14)
2. During the dot-com era, mergers among some brokerage houses resulted in the acquiring firm paying a premium on the order of $100 for each of the acquired firm's customers.
- Is there a business rationale for such a strategy?
- Do you think these circumstances are met in the brokerage business?
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What happened to Jamie Mullet just before Christmas in 2008, and to his house and farm afterwards?
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The city of Spillsville is worried that its municipal landfill is going to fill up. As a result, the city's sanitation engineer has proposed three solutions: Require each household to reduce its garbage disposal by 100 pounds per month.
Go back to the numerical example with no factor substitution that leads to the production possibility frontier in figure 5-1. What is the range for the relative price of cloth such that the economy produces both cloth and food? Which good is produced..
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Now looking at this scenario, would company rather increase wages slightly, not so much that it will decrease profits, but to a point where productivity may rise higher than what was originally given to employees.
Gillian Dempsey presents an alternative perspective on Intellectual Property (IP) policy in her article Revisiting Intellectual Property Policy
Erin makes 800 items a day. Each day she spends 8 hours producing those items. If hired elsewhere she could have earned $300 an hour. The item sells for $20 each. Production occurs seven days a week. If the explicit costs total $200,000 per month,..
If you follow a strategy where you set r for the month (not M a ), money demand shocks have no effect on output, because there is effectively no LM curve - the
What's the purpose of a tariff regarding economics? Provide two examples as well as a detailed description.
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