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Companies sometimes like to locate, somewhat surprisingly, near competitors. You can see gas stations of different brands located really close to each other and a CVS next to a Walgreen. This tendency is called clustering. Please justify this type of location decisions.
When medical care is reimbursed through employer provided insurance whose welfare is ultimately affected when cost of medical care rises: the owners of the firm that pays the premiums, the government whose revenues are reduced because insurance benef..
The market for sports performance drinks experienced a big shift in 2012 as sales of low-calorie sports drinks grew by over 25%. Many attributed this shift to greater use by women who wanted a sports drink without many calories.
If the economy is in the vertical portion of the aggregate supply curve, according to monetarists, an increase in the money supply in the long run will
A university schedules summer school courses based on enrollment. The cost for faculty compensation, laboratories, student services, and allocated overhead for a computer class is $8500. If students pay $420 to enroll in the course, how large would e..
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $10 million per year and a variable cost of $2 per bag no matter how many bags are produced. If this firm kept on in..
In a world of two goods (say, x and y) an increase in the price of x which is accompanied by money compensation for the income effect alone will lead to:
The US financial market was hit by a financial crisis in the late 1990's known as the subprime mortgage crisis. Write a report on the crisis using the APA style highlighting the challenges faced during this period.
The stock has a beta of 1.4, the risk free rate is 3% and the return on an average stock is 12%. What should you pay for a share of this stock?
1) Draw the normal form of the game where either firm can choose to Cooperate or Defect.
If a firm starts small and, over time, builds successively larger plant sizes or adds additional work space in an office, average total costs are most likely to
What are the implications for international business of differences in the dominant religion, social structure, and educational systems of a country? How do religion, social structure, and education combine to form a system that defines the culture o..
Some Health Economists believe that the demand for medical care may be “supplier” or physician-induced. State whether under a Fee-for-Service and under a Capitation financing structure physicians will have an incentive to increase or decrease demand.
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