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Two to three pages should be sufficient for each question.
Antitrust authorities at the Federal Trade Commission are reviewing your company’s recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power. A hearing is scheduled for your company to present arguments that your firm has not increased its market power through this merger. Can you do this? How? What evidence might you bring to the hearing?
How do the following events influence GDP? Each of five mothers living in a neighborhood takes care of her pre-school child in her own home. The mothers share the childcare work, each one taking all five children one day a week. A Japanese company bu..
When asked in a television interview what she felt she was missing out on because she spent most of her time training for the Olympics, a rower answered, “A normal social life.” She also revealed that she had given up a job that paid $20,000 per year..
Assume that you were ready to buy a custom tailored dress (or men’s suit) and you are prepared to pay up to $200 for it. Also assume that the tailor is prepared to sell that item of clothing for as little as $100. Discuss any recent purchases you hav..
Assume an open, mixed economy (C+I+G+X=real GDP) and an MPS of .2 What is the multiplier? if the government spending (G) increases by $50B, how much will the real GDP increase? If taxes also increase by $50B, consumption (C) will fall by how much?
Compare the supply and demand conditions in both locations. How many people live in each place.
Assume that major wheat producers in the world increased their land under wheat by 30 percent. Graphically show the effect of increase in land under wheat on the grain market.
Use the markdown pricing decisions spreadsheet model and a two-way data table to find the total revenue if days at full retail vary from 20 to 40 in increments of 5 and the intermediate markdown varies from 15% to 50% in increments of 5%. In Excel sp..
In April 1978, Fidel Castro announced that Cubans who wanted to leave Cuba for the United States could do so from the port of Mariel, Cuba. Within 6 month, about 125,000 (mainly) lowskill Cubans had flowed through Mariel for Miami, resulting in a sud..
Does the United States have an absolute advantage in coffee production with most countries? Explain. Could the United States have a comparative advantage in coffee production with another country? Explain.
Nemo Corp. is in the business of manufacturing cast and stamped steel products for the automotive industry. Steel ingots are purchased from the steel mills. For casted products, steel ingots have to be melted and cast. For stamped products, steel ing..
Suppose that the U.S. Department of Agriculture (USDA) administers the price floor for cheese, set at $0.17 per pound of cheese. The graph also shows that the minimum price at which a few of the producers are willing to sell is $0.06 per pound. In t..
Markets tend NOT to generate a socially desirable outcome when:
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