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1. Evaluate the statement: The Demand Curve that Crest (the tootpaste company) faces is flatter than the Demand Curve that Coca-Cola faces? Why, or why not? Make sure to provide supporting arguments.
2. Evaluate the statement: Colgate should spend more on advertising than Coca-Cola, if we consider the advertising expenditures as a percentage of sales. Why, or why not? Data suggests that Coca-Cola's spending on advertisement as a percentage of sales is higher than that of Colgate. What could explain the difference?
3. Provide one argument pro and one against advertising. Illustrate with at least one example from a recent advertisement (on TV, radio, etc.)
4. Describe two different aspects in which a monopolistically competitive firm behaves like a perfectly competitive firm.
5. Evaluate the statement and explain why it is correct or incorrect: "The existence of excess capacity makes a monopolistically competitive firm resemble more a perfectly competitive firm."
A machine costs $50,000, and increases revenues by $18,000 per year. However, O&M costs increase by $4,000 per year. The machine lasts 6 years and your MARR is 7% annual rate compounded annually. What is the Present Worth (or Net Present Value) and s..
"Space" is not just meant as Captain Kirk's "final frontier" in Star Trek. "Space" is also a term used in design to have the purpose in a long-term care facility of compensating the enviornmental arrangements to accomodate lessened sensory acuity, an..
A 10 percent reduction in price that leads to a 2 percent increase in total expenditures indicates a price elasticity of demand greater than 1. If the percentage change in price is less than the resultant percentage change in quantity demanded, deman..
Read the article "The World's next great leap forward. Towards the end of poverty." Then answer the questions below. According to the article, how is poverty reduction achieved? In other words, what is the source of poverty reduction? What will happe..
Suppose the UN has two pure strategies: It can either inspect facilities X and Y (both of which are geographically close to each other) or inspect facility Z. Find a Nash equilibrium in mixed strategies.
Discuss how an imperfectly competitive firm resorts to price discrimination to maximize its profits. One of the criticisms of oligopolies is the adverse impacts these firms have on income distribution. Do you believe that is a valid critism? Discuss ..
Do you think the price elasticity of demand for Ford sport-utility vehicles (SUVs) will increase, decrease, or remain the same when each of the following events occurs? Explain your answer.
A trucking company computes depreciation on its vehicles by a mileage basis. Suppose a delivery truck has a cost of $20,000, a salvage value of $2,000, and an estimated useful life of 200,000 miles. Determine the depreciation rate per mile.
Which of the following statements regarding a monopolist is false?
Reflect on the changes in U.S. manufacturing over the last half century. Why did the United States lose so many jobs? What impact did that job loss have on the U.S. economy and on the economies of countries like China and Mexico that have been the re..
Identify at least one alternate health profession, such as PA-C, and a related professional organization, such as the American Academy of Physician Assistants. What is your interest in this profession? What are your goals regarding this profession? D..
What is the value of a preferred stock that pays a perpetual dividend of $100 at the end of each year when the interest rate is 6 percent?
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