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The problem below asks about the oil price increase from 1973-1980. We have also seen this in 2005 and 2010, although not as dramatic a price increase. Please answer the questions in this problem. Discuss. Problem: When oil prices increased 10 fold during the 1973-80 energy crisis, many oil companies made huge profits. During this energy crisis, Congress considered imposing an “excess profits” tax on oil companies. Do unexpected monopolistic profits serve any useful function in a market economy? (Hint: Could additional oil revenue be used to explore and develop new oil fields?)
Elucidate that contract align the incentives of the new vice president with the goals of the owners.
You bought 300 shares of General Electric (GE) stock at $3,200 on May 21, 2013. Your intention is to keep the stocks until they double in value. If you expect 8% annual growth for GE stock, how many years do you anticipate holding onto the stocks Com..
How do the salaries of major league baseball rookies and free agents demonstrate the market principles of supply and demand?
In 1986, John Deere was building a capital intensive factory to produce large, four-wheel-drive farm tractors. Then the price of wheat dropped dramatically, reducing demand for these tractors because they are used extensively for harvesting wheat. Ca..
The property in that area is rapidly appreciating in value because people anxious to get away from urban developments are bidding up the prices.
In the Castorian Airline market there are only two firms. Each firm is deciding whether to offer a frequent flyer program.
Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of chips, and one comic book. In year one, the basket costs $8.00. In year two, the price of the same basket is $7.00. From yea..
Union membership has been declining in the U.S. private sector for many years. What do you think are the major reasons for this? Why isn't this true for the public sector? Describe the actions that an employer may take when a union attempts to organi..
Why is that the pre-trade production points have a bearing on comparative costs under increasing cost conditions but not under conditions of constant costs?
Suppose the current price of copper is $3 per pound and the quantity supplied is 200 pounds per day. If the price of copper falls to $2.50 per pound, the quantity supplied drops to 180 pounds per day. Use the midpoint formula to calculate the price e..
Illustrate what did he know about costing to the chain store representative was overlooking. Be sure to describe or chart the shape of Morita's costing.
Find outing relate to economist's traditional focus on Illustrate what people do, rather than Illustrate what they say they will do.
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