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You are a builder of fiberglass boats in very competitive markets. Fiberglass is derived from crude oil which has recently risen in price.
a. Using diagrams, show what happens to the cost curves of your firm and to the market supply curve due to the increase in oil prices.
b. What will happen to the equilibrium market price and quantity? How will the firm’s sales be effected?
c. What happens to the profits of your firm in the short run? What happens to the number of boat builders and your firm’s profits in the long run?
Describe two (2) reasons why The Coca-Cola Company would choose to protect its soft drink formula as a trade secret, as opposed to using another form of intellectual property protection (for example, a patent).
You want to study the effect of education on earnings (yit = earnings). You have panel data on annual earnings for many workers. You think earnings will depend on age, education, and union status and you run that regression.
Provide a rational for why you feel the new target market and pricing strategy would be successful and the likely impact to the profitability of the firm.
What is the profit-maximizing rate of output for the firm?( b ) How much profit does the firm earn at that rate of output?
Show the graphical implications of agricultural production increasing at a rate that is faster than population increases during the same time period. Explain the outcomes.
There is no uncertainty about the future. The consumer needs to save an amount this year that will allow her.
How versus simply ordering each farm to reduce pesticide use to 40% of current levels under threat of heavy fines for non-compliance.
The best answers eliminate the puzzle concisely. Explain the short-run effects of eliminating rent control on apartments. In a competitive industry, with competitive supplies of labor and capital goods which have only normal gains, which factor obtai..
q.assume a consumer has 600 to spend on two goods good x as well as good y. the cost of good x is given by px 20. the
What are some of the top reasons of consumers reporting lower life satisfaction, even though their purchasing power has recently increased?
Whose interests should be the paramount concern of government trade policy - the interests of producers (businesses and their employees) or those of consumers? Given the arguments relating to the new trade theory and strategic trade policy, what kind..
The monetary base increased by 20% during the contraction of 1929-1933, but the money supply fell by 25%. Explain why this occurred. How can the money supply fall when the base increases?
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