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Describe the economic principles that company executives should consider when developing a strategy or strategies that will maximize profits while minimizing incentives for competitors to develop competing products. Explain why each of these economic principles is important to the company's strategy. Recommend and justify a strategy that you believe will maximize profits while minimizing incentives for increased competition.
Another utilization of cash flow analysis is setting the bid price on a project. To calculate the bid price, we set the project NPV equal to zero and find the required price. Thus the bid price represents a financial break-even level for the project...
From the e-Activity, determine key reasons why a multinational corporation might decide to borrow in a country such as Brazil, where interest rates are high, rather than in a country like Switzerland, where interest rates are low. Provide support for..
What are two reasons why there may be a short-run trade-off between unexpected inflation and the unemployment rate. How do each of the following sources of real business cycles would effect the economy:
When using creativity to generate new concepts, should our focus primarily be directed to external markets? Why, or why not? Defend your answer and offer a specific example to support it.
Given the Federal Trade Commission's approval of Nestle's acquisition of Dreyer's Grand Ice Cream Inc., two multinationals, Nestle SA and Unilever prepared to engage in ice cream wars. Describe how ice cream industry fits the oligopoly model. How doe..
Elucidate how events such as the World Trade Center and Pentagon attacks described in the case study affect the aggregate demand curve.
The short-run marginal cost curves of each of the 1000 firms in the fireworks are given by MC = 10+Q, where Q is measured in pounds of cherry bombs per year and MC is measured in dollars per pound of cherry bombs. How much better off would consumers ..
Explain why a weaker dollar could involve the UK balance of trade deficit.
Discuss the impact of major accounting/financial scandals on investors’ asset preferences. In your opinion how do the scandals affect foreign markets? Discuss two macro variables that affect changes in interest rates/or markets. If you watch these va..
We saw that a $10 Billion increase in government spending decreases public savings and therefore reduces national savings, and will reduce equilibrium private investment and increase interest rates as well. A $10 Billion tax cut will decrease governm..
A survey of economists revealed that more than three-fourths of them agreed with a number of statements, including which of the following.
A bank account currently pays interest at a rate of 3% per year. The current inflation rate is 2% per year. If I invest some money in the bank account, then what is the real interest rate that I am earning? If I decide to withdraw the entire balance ..
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