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1. Electrotech, a maker of household smoke detectors, buys resistors for its smoke alarms for $.15 each. The resistor manufacturer marks-up the resistors from $.10.
Does the resistor manufacturer’s mark-up necessarily represent profit?
Will Electrotech make more profit by making its own resistors and avoiding this mark-up?
2. Suppose that athletic shoe manufacture Avia redevelops its entire line of shoes but is unsure what its popularity will be. It order to guarantee a market for its shoes, it buys retailer Finish Line, which will carry the revamped line of shoes. Is vertical integration for this reason a profitable idea? Briefly explain.
the instructions concerning this assignment as well as the grading rubric are reproduced below. in 2009 the american
If the nominal interest rate in Japan remains unchanged, what happens to the interest rate paid on Korean deposits.
Rexall Industries is planning to expand sales of its line of drilling machines to the mid-west. We hoped one of our existing salespeople would be willing to take over the new territory. However, they have all turned it down. So, we’re going to have t..
The first fundamental welfare theorem gives the conditions under which the private market can lead to a particular efficient outcome. A Pareto efficient allocation is one that yields a fair outcome.
You are Chair of the Federal Reserve Board. In your meeting with the Federal Open Market Committee, the committee unanimously votes to increase the money supply using open market operations (OMOs). During the press conference after the meeting a repo..
Suppose the managers of the two firms decide to collude. If they formed a cartel, illustrate what would be the profit maximizing level of output.
A farmer sells cotton to a clothing company for $1,000 and the clothing company turns the cotton into T-shirts that it sells to a store for a total of $2,000. How much did GDP increase a result of these transactions? Category Amount:: Durable Goods $..
u.s. supreme court justice stephen breyers book breaking the vicious circle toward effective risk regulation 1993
A single firm monopolizes the entire market for some product which can be produced at a cost of c(Q) = Q^2. The firm faces a market demand curve given by Q = 60 ? 0.5p. What is the firm’s profit? Calculate the Lerner Index for the market
Assumes the perfectly competitive firm is in long-run equilibrium also there is an rise in Demand
Assume that two power plants, Firm 1 and Firm 2, release arsenic in a small urban community that exceeds the emissions standard. To meet the standard, 40 units of SO2 must be abated in total. Determine the abatements for company 1 and 2 under the cos..
From your personal experience, discuss a situation you have faced that would require one of the six elements of moral judgment. Identify the element of moral judgment you chose and justify your response.
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