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Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms. (At the same time, one internet business such as grocery home deliveries have continually suffered steep losses regardless of scale. Explain why.) Could lower transaction costs in e-commerce ever make it easier for small suppliers to compete? As noted in Chapter 3, network externalities are often an important aspect of demand for information goods and services. (The benefits to customers of using software, participating in electronic markets, or using instant messaging increase with the number of other users.) How might network externalities affect firm operating strategies (pricing, output, and advertising) and firm size?
The Harrod-Domar model predicts that a country’s long-run per capita growth rate depends on its rate of savings, whereas the Solow model predicts that it does not. According to both the Harrod-Domar and Solow models, if total factor productivity (i.e..
explain exactly how you would take advantage of this situation to create a riskless profit.
Illustrate what effect do rising interest rates have on the value of the Australian dollar. Use an AD/AS diagram to show the effects on Real GDP and the price level of an appreciating Australian dollar.
Ilustrate what is the marginal product of capital and labor. Does the answer depend on how much labor and capital are used.
Elucidate which of the following U.S. policies and institutions may negatively influence U.S. long-run economic growth.
A risk-neutral consumer is deciding whether to purchase a homogeneous product from one of two firms. One firm produces an unreliable product and the other a reliable product. At the time of the sale, the consumer is unable to distinguish between the ..
A firm that acquires a substitute product can reduce inter-product cannibalization by
Suppose nominal GDP in 2002 was $100 billion and in 2003 it was $260 billion. The general price index in 2002 was 100 and in 2003 it was 180. Between 2002 and 2003 the real GDP rose by:
Andrew has decided to open an online store that sells home and garden products. After searching around, he chooses the software company Initech to provide the software for his website since their product required the least amount of specialized inves..
q.a suppose we randomly poll 500 americans and ask them whether they believe that the parents are involved. what is the
Voters in the State of California decide that the tobacco industry is having too great an impact on the outcome of local referenda limiting smoking in public places.
q1. a corporation has 7 million in equity. during the tax year it takes in 4 million in receipts and earns 2 million in
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