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A domestic shoe company distributes running shoes and tennis shoes for $95 per pair. The marginal cost of producing a pair of running shoes is $60 and the marginal cost of producing a pair of tennis shoes is $45. A Chinese retailer offers to purchase running shoes for $55 per pair and tennis shoes for $55 per pair for distribution in China. Should the shoe company sell any shoes to the Chinese retailer? (Ignore any potential issues of bundling the two types of shoes together as part of the sale and any competitive effects that international sales might have on current domestic sales.)
Evaluate whether and to what extent the human failures that led to the disaster can and will be corrected.
Explain why do you think it is important for managers to understand the mechanics of supply and demand both in the short run and in the long run.
Explain how the MAS have successfully used exchange rate policy to achieve price stability for the last two decades.
Now suppose Starbucks introduces world to premium blends, and so demand rises substantially.
For every of the subsequent goods, indicate whether you expect demand to be inelastic or elastic also explain your reasoning
You are expected to apply some of the concepts/ models or theories used in the course as well as secondary research (eg. periodicals, trade publications, newspapers etc).
Two dry cleaners are located on a street of length. The firms do not make the same profit, verbally describe why this is the case.
This will mean replacing one of the weekly passenger flights with a freight flight
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What is retained earnings. What items increase balance in retained earnings. What items decrease balance in retained earnings.
Elucidate the equilibrium price and equilibrium quantity. Suppose the price is currently $2. What problem exists in the economy? What would you expect to happen to price.
What is the monthly interest rate? How much will Susan pay each month for 45 months? What effective interest rate is being charged?
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