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Suppose the supply curve for a good is totally inelastic. If the government imposed a price ceiling below the market-clearing level, would a deadweight loss result? Explain.
While the supply curve is totally inelastic, the imposition of an effective price ceiling transfers all loss in manufacturer surplus to consumers. Consumer surplus rises by the variation among the market-clearing price and the price ceiling times the market-clearing quantity. Consumers capture all reduces in total revenue. Hence, no deadweight loss occurs.
Explain how to compute the overall balance and discuss its significance. The overall BOP is defined by computing the cumulative balance of payments involving the current account,
Rationale for Mergers Many of the motives behind mergers of firms are discussed hereunder: Growth Growth is the most general and important motive for mergers. Merging f
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Discuss the applicability of an operating in vegetable growing business in Uganda.
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Leveraged Buyout (LBO) Acquisition of an organization through the accumulation of 70 % or more of the organizations total capitalized debt.
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