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Why do firms exists?
Why are some transactions done within a firm, and some between firms?
Which is more likely to be done within a firm: a spot simple transaction or a long-term complicated one?
If using the market is costly, why does it exist? Why isn't the economy just one giant firm?
Assume that a piece of equipment has a replacement cost of $10,000 and an 8-year life. Calculate its annualized cost at an interest rate of 15%. Show your calculations.
1. The population of the world in 2003 was 6.314 billion. It grew between 1975 and 2003 at an annual rate of 1.6%. Assume that it continues to grow at this rate. a. Compute the doubling time. (Understand the Rule of 72)
What do you think of an idea of comparative advantage as a basis of international division of labor?
Could trade help reduce poverty in Brazil and other developing countries. How do product and factor prices and wages eventually equalize between the two countries.
Given these profits, Firm 2 want to match Firm 1's price, but Firm 1 does not want to match Firm 2's price. Does wither firm have a dominant strategy? Does this game have a unique, pure strategy Nash equilibrium? Identify all pure- and mixed-strategy..
The cyclical rate of unemployment can be negative, which implies that the business cycle sometimes produces too little unemployment. How can there be “too little” unemployment for the health of the economy? When the one million quit looking for jobs,..
Oscar's Outdoor Signage employs salesmen to find new advertisers for existing signs. In an average month, salaried sales staff can keep 80 of 100 signs.
Use the .05 significance level. Can we conclude that the slope of the regression line is less than zero?
Find an interval for the observed monthly sales, which is symmetric around the mean of the monthly sales
Combinations of debt-equity financing mean that a weighted average cost of capital (WACC) percentage rate (%) results. What is the WACC % for a purchase made with 1/3rd of the total purchase made with a credit card (debt financing) at i=24% per year..
Price outcomes of the 5 oligopoly models differ substantially. Which models produces the lowest and highest total profits (all firms combined)? What are the predicted prices? Provide aviation industry examples of routes or markets that might approx..
A decrease in productivity in a country will cause its currency to ________ because it produces goods at a ________ price, everything else held constant.
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