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Discuss the economics justifications for a merger. In particular, how might these reasons apply to companies now merging in the following industries oil automobiles telecommunications electric power commercial banks
Illustrate what way are entrepreneurs also businesses at the helm of the economy but commanded by consumers.
What characteristic(s) of oligopoly make their prices and output levels "sticky?" Does this make the competitive environment for firms more risky or less risky?
Determine how the following affects the slope of the output demand curve, and explain your results: The marginal propensity to consume increases. The intertemporal substitution effect of the real interest rate on current consumption increases.
Suppose the cost function for your firm is: C = 10 +2Q + 5Q2. If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $35, What level of output should the firm produce to maximize profits o..
Consider a piece of property that is jointly owned by two individuals, each of whom owns a one-half share. Suppose that in order to sell owner 1 requires $3,000 for his half share, but owner 2 requires $6,000 for her half share. Suppose instead that ..
Explain the formation of the modern nation-state in the West. Why did it happen? How? What were the major forces at work? Where did it develop first and what were/are its characteristics?
Assume that firms A and B have the same minimum efficient scale of operation and, at current production levels, both firms are incurring the same average costs of production. However, firm A's output is 5 times larger than firm B's output. How is thi..
Explain what type of labour market interference is most often experienced by men and which type is most often experienced by women. Make sure you define each of the two types of interference.
The manager of Big Oil Company in Mandeville tells investors that at the end of 2006 they had gasoline in inventory worth $446. In 2007, Big Oil produced gasoline worth $353 and sold gasoline worth $217. How much did Big Oil add to Mandeville's GDP i..
The firms and workers in Bayernland form expectations rationally. The firms and workers in Realland form expectations adaptively. Their otherwise identical economies are initially in equilibrium at the natural level of output with 6 percent inflation..
You are managing a computer chip manufacturer. Your machinery produces chips normally distributed with an average chip speed of 8 gigahertz (ghz) and a standard deviation of 0.5 ghz. The cost of production is $100 per chip. Chips with speeds from 7 ..
Suppose someone stated that the Heckscher-Ohlin model is best-suited for explaining trade between developed countries and developing countries, while newer theories such as those of Linder and Krugman are best-suited for explaining trade among develo..
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