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Nestlé's has over one hundred production facilities that all purchase hair nets and other hygienic supplies through independent suppliers. Nestlé created a centralized purchasing system that is cumbersome to use has the potential to bargain for lower prices. Suppose that each of two divisions can purchase hairnets for $8 independently. If they all purchase through the central system, hairnets cost $6. But if one division uses the system and the other purchases independently, the cost to the first is $9 while the cost to the second is $7. What does the sequential move game look like for two divisions where division 1 goes first? What is the equilibrium?
Why is it so important to choose a market basket that reflects purchases that consumers actually make?
Assume that a “leader country” has real GDP per capita of $50,000, whereas a “follower country” has real GDP per capita of $25,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 14 percen..
One aspect of obtaining a college education is the prospect of improved future earnings in comparison to non-college graduates.
What reforms should be enacted to insure the integrity and transparency of the municipal bond market?
Determine the firm’s supply functions when all fixed costs are avoidable. Determine the firm’s supply functions when all fixed costs are sunk. Determine the firm’s supply function when only $200 of the firm’s fixed costs are avoidable.
one of your econ classmates is puzzled by how the wealth effect is a reason for not only the downward sloping nature of aggregate demand (AD) schedule, but also for shifts in the AD curve. Briefly offer an ezplaination that can resolve that dilems..
What are the important differences between the markets for financial securities such as the New York Stock Exchange and your local flea market?
Consider the costs for the following lobster producing firm in a perfectly competitive market: TC=80+10q+q^2 & MC=10+2q. From the total cost function(TC) derive the average total cost(ATC), average variable cost(AVC) and average fixed costs(AFC) func..
The War on Poverty and Subsequent Federal Programs: What Worked, What Didn't Work, and Why? Lessons from Future Programs
A "run on gasoline" occurs when consumers' fears of gas shortages in the future lead them to demand more gasoline now. Using supply and demand analysis, which of the following is consistent with this situation.
What is the process by which a recessionary gap closes itself? Explain. Why might this self-correcting mechanism work slowly in the face of a recessionary gap?
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