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The idea that transactions in a market place work like an invisible hand is to some extent the idea that when a person chooses to buy an item at a given price they are happy with the deal. There is no coercion. If the person really does not like the deal they simply walk away.
Given that background. Your business partner is strongly opposed to your proposal to charge your largest customers lower prices for your web-based services than you will charge your smaller customers? She is arguing it is unethical. Explain why both customers will be satisfied with the deal. What kind of price discrimination is this type of segmentation and how will the plan increase revenue?
The method used to prepare the budget can also affect the amount of time it takes to complete the budget. For example, companies that use participative budgeting will likely take longer to complete the budget process. What is participating budgeting?..
The equilibrium price for a good is $20. The government imposes a $30 price ceiling. Why do we expect firms in this market to only charge $20?
Suppose that it is well known that many children work in low-skill jobs in poor country “X.” If rich country “Y” buys goods from poor country “X,” then the increase in demand for their products is large enough to raise the wages of all low-skill work..
And what they are designed to do, the impact of the exceptions, and whether you think they are successful in preventing unethical behavior.
What is the structure of the Fed? What is the difference between the Fed and the Treasury? What are the goals of the Fed? What actions are at the disposal of the Fed?
In its effort to reduce the time value of money, the Federal Reserve System began aggressively increasing the supply of money through Quantitative Easing. What is true and what is false about the above statement? Explain
Consider a firms per-period (e.g., hourly) production process. If it employs 1 unit of labor, then 5 units of output will be produced; if it employs 2 units of labor, then 12 units of output will be produced; and if it employs 3 units of labor, then ..
Sam purchased a five-year Treasury note with a $1,000 face value and a 7.5% coupon rate. Using the Excel spreadsheet, calculate the coupon payment Sam receives if he purchases a five-year Treasury note. To do this, first enter the appropriate coupon ..
You are given the following information. The current dollar-pound exchange rate is $2 per pound. A U.S. basket that costs $100 would cost $120 in the United Kingdom. How much is the dollar overvalued/ undervalued? What do you predict the U.S. real ex..
You can write your research about social problems where the free markets are not allowed to function, which includes the market for a particular illegal good or service, a regulated market, etc.? Discuss the risks of introducing market mechanisms of ..
All of the following are strategies a firm with market power can adopt to increase it profits over time except: A. erecting barriers to entry. B. setting price equal to the marginal costs of production. C. mergers with, and acquisitions of, competing..
Identify and explain the incentives for entrepreneurship. Address why someone would willingly take the numerous risks associated with running a business. Also, discuss the major attributes necessary for a successful entrepreneur
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