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The federal per unit excise tax on gasoline is increased and an industry analyst predicts that the increase will be entirely passed on to consumers. Show two cases in which the analyst would be correct. How likely is it that either of these two cases would occur in practice?
Assume that you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 un..
Do the following events represent business transactions? Explain your answer in each case.
Hong Kong dollar, and the one-year forward exchange rate is 9 yen per dollar. Determine whether or not there is an arbitrage opportunity and, if possible.
The consumer is indifferent between B and a lottery ticket with probabilities. Construct a set of von Neumann - Morgenstern utility numbers for the four situations.
Managerial economics and should include other criteria such as social responsibility and ethics. Remember to cite your authority and be careful not to plaigerize.
In the early 1970s, the six largest manufacturers of ready-to-eat breakfast cereals shared 95 percent of the market. Over the proceeding 20 years, these manufacturers introduced over 80 new varieties of cereals. How would you evaluate this strategy f..
Suppose that in response to a foreign crisis, the government increases defense spending by $50 billion. How would the increase in defense affect the economy? How would the effects differ depending on the size and sign of the output gap when the cr..
Given the difficulties which the regulation of public utilities faces that would it not is better to nationalize public utilities as several European countries have done.
An increase in government spending initially and primarily shifts which curve in what direction
Estimate and explain how the electrical monopolist would determine its profit-maximizing price and output level.
Explain what the GDP cost index is and what is its role in differentiating nominal GDP and real GDP.
A company bought a machine with an initial value of $120,000 with life time of 8 years and a salvage value of $12,000, assuming ? =0.60 find the book value at year six using the declining method.
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