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Non-Price Vertical Restraints.
a) What are exclusive territories (ET)? Explain 4 reasons why a manufacturer would be willing to grant an ET to a dealer? Under what circumstances are ET in the public interest? Discuss the possible impacts of car manufacturers granting ET to their car dealerships.
b) What is exclusive dealing (ED)? Explain 4 reasons why manufacturers would want to impose ED on their dealers. Under what circumstances is ED in the public interest? Discuss the possible impacts of beer producers imposing ED on dealers (i.e. pubs) in the UK.
What is the present worth of a series that gives you $56 in period 1 and then gives you $1 more each time period until period 100 when the interest rate is 5%?
Using AD/AS analysis shows graphically the difference in how an economy initially in general equilibrium would respond to a negative AD shock due to central-bank action (i.e. a change in inflation target) assuming (i) adaptive expectations or (ii) a ..
Consider the market for footballs. Suppose the demand for footballs is given by F = 50 P − 1. (1) Suppose further that the marginal private cost of producing footballs is $10 per football. Suppose the football market is competitive. What price will t..
Suppose the unemployment is above the natural rate and the economy is at an inflation rate. How does the economy return to the natural rate of unemployment if this lower inflation rate persists?
Explain how could those same inventory systems quickly transmit large demand shocks directly to sudden, deep recessions.
Requisition items through Military Standard Requisitioning & Issue Procedures (MILSTRIP)
Using an appropriate diagram, impact of the monopolist on the society's welfare
Suppose that two UK government bonds have same face values with £100. One has an outstanding maturity of 2.5 years. Its coupon rate is 9.75% and coupons are paid semi-annually.
Millicent runs an Etsy shop on which she sells bracelets (y) made from ounces of beads (z1) and inches of silver-plated wire (z2). Millicent’s production function is f(z1, z2) = z1^1/4 z2^3/4. What is the equation for the isocost line that goes throu..
Use the IS/LM-AD/AS framework to illustrate the short-run and long-run effects of a decrease in the markup (m?). Assume rational expectations. Explain the role of the interest rate here. That is, why does the interest rate have to fall?
What are the basic elements of health insurance? Define and discuss these elements. For example, what are risk and uncertainty and why are they important concepts in health insurance? What are the benefits and drawbacks to having employers as the pri..
Some industries are dominated by women because women are more productive than men in those industries. For example, mushroom pickers tend to be women because their smaller hands don’t bruise the mushrooms. Often men are able to compete with women in ..
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