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1. What strategy was Avon pursuing until the mid-2000s? What were the advantages of this strategy? What were the disadvantages?
2. What changes did Andrea Jung make in Avon's strategy after 2005? What were thebenefits of these changes? Can you see any drawbacks?
3. In terms of the framework introduced in this chapter, what strategy was Avonpursuing by the late 2000s?
4. Do you think that Avon's problems in 2010 and 2011 were a result of the changes inits strategy, or were there other reasons for this?
Assume bread is subsidized in a small Caribbean nation with a high percentage of citizens who live in poverty. The subsidy is paid to suppliers of bread through government in amount of 50 pesos per loaf.
The utility function of a worker is represented by U(C,L) = C X L, so that the marginal utility of leisure is C and the marginal consumption is L.
If the Federal Reserve sells government bonds, will short-term interest rates rise or fall. Explain how this will affect aggregate demand and the rate of growth of the economy.
Calculate the price elasticity of demand for the product below using average values for the prices and quantities in your formula.
Utilizing such areas as manufacturing and information technology or any related industry / areas that have had high job growth rates explain a scenario that would cause a shift in labor supply and demand.
Assume you fail to hedge, but the British ale seller decides to cut you a break and only pass through half of the pound appreciation.
Before 2005, economists estimated the cross-price elasticity between fruits and vegetables to be +1.5. Since the introduction in 2005 of the "New Food Pyramid", the revised estimate of the cross-price elasticity between fruits and vegetables is no..
Illustrate what are the four supply factors of economics growth. What is the efficiency factor? Please illustrate these factors in the terms of the production possibilities curve.
Suppose that Carl's budget is $20 and that apples cost $5 per unit and bananas cost $2 per unit. Draw our model of the optimal bundle with Apples on the horizontal axis. (You must show his indifference curves and his budget set.)
Discuss the differences between behavioral and equilibrium relationships and explain the basic Idea behind the Solow model and its relationship with technological advance. What will add to capital stock and detract from it.
Suppose planned investment falls by 100. Graphically illustrate using the AE-Y graph the effects of this reduction in planned investment on the economy. Also calculate the new equilibrium level of income.
Write down an equations for total revenue and marginal revenue.
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