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Anti-trust 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?
This might be interpreted as an upward shift in the consumption function. Elucidate how does this shift affect investment and the interest rate.
q1. suppose china produces both agricultural and capital goods. draw and show the change in the ppf when an outbreak of
Imagine you are a member of Congress. Since consumer spending comprises at least 2/3 of real GDP, you know that increasing that spending would boost the U.S. economy in the short run. During a press conference, a member of the press asks you what you..
What amount of profit is the firm earning? Is this firm in a short-run or long-run equilibrium? Explain
Name a specific event to be expected to cause the equilibrium price of ice cream to increase.
Illustrate what is the reason the productivity also real incomes of workers in the industrially advanced economies have risen historically partly.
q.suppose two individuals smith and jones each have 10 hours of labour to devote to producing either ice cream x or
This chapter uses the analogy of a “leaky bucket” to explain one constraint on the redistribution of income. What elements of the U.S. system for redistributing income create the leaks in the bucket? Be specific.
Those who advocate that the Fed target monetary aggregates, usually argue that the Fed should not alter its monetary targets in response to temporary changes in macroeconomic conditions, yet those who advocate interest rate targeting never recommend ..
Consider a facility that has a 30-year life, a replacement cost of $2 million, and an interest rate of 5%. Calculate the annualization factor. Show your work/ calculations using the formula. To implement the project, a new equipment is purchased at $..
Suppose you were given a choice to select from a menu of items in your employee benefits package. The menu might include medical coverage ($1500 deductable), life insurance equal to a year's salary, vacation time based on length of employment with th..
A company plans to erect biggest wind farms in the world with 200 wind turbines costing some $1.69 million each. Generating power from wind is not profitable for companies without government tax breaks. Determine the IRR on this investment by plottin..
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