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From our discussion of consumer behavior and elasticity, "Do you believe Americans will no longer shop as they had before?"
For example, in the "old days", Jimmy Choo shoes would cost $500 (approximately - ladies - help me out here) but now can obtain for 70% less.
Do you think we, as consumers will be more price sensitive and price conscious?
What do you think this means for luxury goods?
Explain why cannot nations like Greece or Spain use quantitative easing as a means to stimulate their economies.
Full employment income is estimated to be $11,000. The current interest rate is estimated to be 4.178 recent. While last year total business investment spending was $900.
You have been hired to work with a resort owner in Northern Minnesota. This resort owner runs a very small operation catering to mostly people who like to fish.
From this information, can you devise a general rule explaining how the Herfindahl-Hirschman index is affected when exactly two firms in the market merge? (Hint: compare a2 + b2 with (a + b) 2)
Consider the Bertrand model with no product differentiated in which each firm has a positive and fixed sunk cost F and zero marginal cost. What are the equilibrium prices and profits? Illustrate your result on a proper diagram.
Describe the relative impact that every variable has on the demand. What implications do these results have for the firm's marketing and pricing policies.
Suppose that the airplane can be purchased from an outside supplier. What is the relevant unit cost for this make-or-buy decision.
Explain how an increase in interest rates initiated by the Federal Reserve affects:
Explain by how much should domestic automakers raise the price of automobiles if they wish to increase sales by 5 percent next year?
The ability to create new products and process and to organize production to make goods and sevices available.
Illustrate what might a high dividend payout ratio suggest to an analyst about a company's growth prospects.
Show that, with a linear demand curve, the imposition of a per-unit tax on a monopoly will cause price to rise by less than the tax. Would this be true for a constant elasticity demand curve?
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