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XYZ is a small leather shoes manufacturing company. The market for the brand of shoes produced by XYZ is highly competitive, currently selling for $100 per pair. XYZ's total and marginal cost functions are as follows: C(Q) = 1,000,000 + 0.01Q2 MC = 0.02Q Where Q is number of pairs of shoes produced per year. a. How many pairs of shoes will the firm produce in order to maximize profit (minimize loss)? b. How much profit (loss) will the firm earn? c. Analyze the firm’s position in terms of the shutdown condition. Should XYZ operate or shut down in the short-run? (Hint: The company’s fixed and variable costs can be derived from the TC equation)
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What are some more common restrictions on the activities of multinational corporations in host countries? Your 200 word answer should focus on selecting and organizing your most relevant comments in a coherent fashion
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Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 5%, the growth rate of the velocity of money is 4% and that the real economic growth rate i..
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In which of the following situations would you prefer borrowing?
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Many national brands are supplying products to be sold by retailers under the retailer’s own private label. For example, Purina, Borden, Heinz – have all admitted to supplying products (sometimes lower in quality) – to be sold under the retailers’ ow..
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