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In markets where minimum efficient scales are very high relative to demand, government often steps in to regulate. Firms in such markets are usually legally protected from competition but often seem to be productively inefficient. Explain why this is puzzling. How can the puzzle be resolved, if at all? What are the main alternative approaches? Discuss briefly the advantages and disadvantages of each.
Suppose that the corn production needs only land and can production requires only labor. The US can produce either seventy kilograms of corn or 100 cans in an hour.
Calculate the forward discount or Premium for the Mexican peso whose 90-day forward rate is $.102 and spot rate is $.10. State whether your answer is a discount or premium.
Out of all of the possible production points along a production possibilities curve, which one of those points does a nation select and why?
Assume Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, market for four wheel drive tractors consisted of 5-company's.
The outsourcing of human resources becomes an important part of United States companies in recent years. How would you describe this in relation to company's profit maximization target?
Suppose the Fed has already make a decision that it wishes to target the money stock. Will the Fed come closer to its target by setting the interest rate at a given level, or will it do better by fixing the money supply through open market operations..
International managements whether the UN, NATO, World Bank, WTO, IMF and others are no more than playgrounds of major powers who use these multilateral institutions to advance their interests often at expense of less powerful nations.
The table given below shows the values of two goods. Assume wheat is produced in the United State and coffee beans are produced in Kenya.
Discuss the advantages and disadvantages of free international trade and imagine that you are Minister of Finance in a country which is in the middle of a recession. Discuss the economic policies that you can implement to impro..
In exchange for a $20,000 payment today, a well known company will allow you to choose one of the alternatives shown in given table. Your opportunity cost is 11 percent.
Explain the difference between average revenue and marginal revenue. Discuss why are both of these revenue measures important to a profit-maximizing company?
Who has a comparative advantage in the production of wristbands and for Kristen and for Anna, what is the opportunity cost of a pot holder? Who has a comparative advantage in the production of pot holders? Explain your answer.
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