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1.) What is the goal of a firm? What is the difference between revenue and profit? Why do we use the assumption that firms have the goal of maximizing their profits as the basis of our models? Is this assumption always true? Why or why not? Does this differ for a nonprofit organization compared to a for-profit organization?
2.) The pharmaceutical industry allows drug makers to hold a patent on a drug for a certain period of time to recoup their costs before it is made available to the public via a generic branding. Why are the prices of generic drugs so much cheaper after they come off a patent? As a part of this, pharmaceutical companies often attempt to extend the patent period for a specific good, but why?
Explain the predicted impact, other things equal, on the terms of trade of developing countries of relatively slow growth in demand for developing countries goods by developed countries combined with relatively rapid growth in demand by developing..
What is the equilibrium interest rate
Construct a segmented bar graph for these data. Which graphing method-the pie chart or the seg- mented bar graph-do you think does a better job of conveying information about response? Explain.
From the production and marketing data given below, determine the profit-maximizing production and sales plans. In particular, determine the output in Venice and Tipton, sales in America and Europe, quantity shipped from America to Europe or vice ..
Normal 0 false false false EN-US X-NONE X-NONE Compare and contrast the fo..
Assuming individuals hold no currency, calculate the simple money multiplier for each of the following reserve ratios
Suppose the government establishes a ceiling on the price of rental accommodation that is lower than the free-market equilibrium price. In this case,
By referring to the approximate convexity of the bond and the modified duration of the bond what is the change in the bond price if yield rate increase by 3%.
Are e-books and textbooks complementary or substitute goods?
You observe a consumer in two situations: with an income of $100 he buys 5 units of good 1 at a price of $10 per unit and 10 units of good 2 at a price of $5 per unit. With an income of $175 he buys 3 units of good 1 at a price of $15 per unit an..
Andrew has taken out a loan for $7,000 with the following terms: interest is only charged on annual payments during the first 4 years, and a payment of the rest of the money owed at the end of the 5th year. The bank is only charging 4.17%. What is th..
Choose a basis for comparison and write a comparison of the approaches to the relationship between youth employment and the economy presented in "Can Generation Xers Be Trained?" (page 509) and "The Sweet Bird of Youth Is Showing Signs of Age" (pa..
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