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The agriculture techniques of many primitive cultures share a common feature. There are very few large plots of land; instead, each farmer owns several small plots scattered around the village. Anthropologists have long questioned the reasons for this scattering, because it is more efficient for a farmer to farm a plot of ground that is not scattered over many areas. Why is it rational for these farmers to own many disperse plots of land (and give up output because it is less efficient) instead of consolidating their holdings by trading land with other farmers? (Assume that it is costless to trade.)
Discuss industry concentration, demand and market conditions and the pricing behavior of Kodak in the 1990's. Do you think the industry environment is significantly different today.
The investors in exercise 2 are surprised by firm's performance in year 5. Instead of being $20 million, the firm's profits are $40 million. What happens to firm B's stock price in year 6 and 7?
AMS recently instituted an in-house recycling program. Profits of this program include not only profits to environment of recycling. Illustrate what level of Q maximizes profit of recycling.
The government is considering increasing the full Social Security retirement age to 75. If this occurs, how do you expect this change would affect how much on-the-job training that workers will want to obtain over their working life?
First Printing has contracts with legal firms in San Francisco to copy their court documents. Daily demand is almost constant at 8,500 pages of documents. The lead time for paper delivery is normally distributed with a mean of 2 days and a standard d..
The U.S. economy fell into a recession in 2001 and then proceeded into a slow-growth recovery due to a decline in investment. Show how a change in investment can have a big impact on GDP causing a national recession. Illustrate by showing what it loo..
If you asked for a loan in cash rather than accepting a checking account, what impact would this action have on the money-creating ability of your bank. What about the banking system as a whole?
A treasurer of a corporation is trying to choose between options and forward contracts to hedge the corporation’s foreign exchange risk. Discuss what options you would take if you were the treasurer. Discuss the advantages and disadvantages of each a..
Suppose the manager of a store wants to know whether the product of the store across the street is a substitute for her product. In other words, she would need to know if the _____ for the products is positive.
The federal government is trying to decide what to do with the surplus they expect to have this year. They increase spending on schools. Determine whether the rate rise or fall? Does the loanable funds rise or fall?
What is fiscal policy? If there were a recession, how could fiscal policy be utilized in an attempt to recreate full employment? What would be appropriate fiscal policy if there were inflation?
The ABC marketing consulting firm found that a particular brand pf portable stereo has the following demand curve for a certain region: Q=10,000 - 200 P + 0,03 Pop + 0, 6 I + 0.2 A where is Q the quantity per month, P is price ($), Pop is population,..
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