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1. Irene’s Dairy is deciding whether or not to enter the market for ice cream, currently monopolized by Mattie’s Ice-cream. If it enters the market, Mattie’s can either accommodate him and share his 10million in profits equally with Irene or fight him and cause a 5million loss for each in a price war.? In a sequential game, given Mattie’s best response function, what would Irene’s best response be?
2. Explain the economic usefulness of Porters Five Forces Model.
3. Explain assumptions underlying the resource based view.
Elucidate the consumers opportunity set in a diagram. Explain how does this change alter the market rate of substitution between goods x and y.
There has been much political discussion about redistributing income. These ideas are not new. Name and elucidate the three political philosophies of redistributing income. Do you believe any of them have merit.
Suppose that the demand curve for wheat is Q = 100 - 10p and that the supply curve is Q = 10p. What are the effects of a specific tax of t = 1 per unit on the (1)equilibrium, (2)government tax revenue, (3)CS, (4)PS, (5)welfare, and (6)DWL?
One of the basic facts of financial markets is that financial intermediaries, particularly banks, are the most important source of external funds used to finance business. Explain the reasons from what we learned in Chapter 8 from Money, Banking and ..
Explain an economy is initially in equilibrium at the natural level. The central bank increases the money supply.
The annual income from an apartment complex is $23587. The annual expense is estimated to be $2208. The apartment complex could be sold for $115756 at the end of 10 years. If your MARR is 10%, how much should you pay for the apartment complex if you ..
Which of the following is not a valid point in debating the merits of increasing government expenditures or cutting taxes during a recession?
Explain the design of a public policy that would subsidize the private performance of the R&D (to ensure that the research is done by the private sector) yet would minimize the public funds used.
Demand in a perfectly competitive market is Q = 100 - P . Supply in that market is Q = P - 10.
Illustrate what will happen to GDP if taxes raise 100million when MPC is .75. Compute both tax also income multipliers.
Delta Airlines experienced huge losses for several years in the early 2000’s, yet it continued to operate its fleets. Why didn’t Delta shut down its operations to further avoid losses?
How does domestic price ratio change. How will country's production pattern change. How will its consumption and trade pattern change. How is welfare affected. Is re a difference to import tariff.
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