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“When the firms in a perfectly competitive industry are just able to cover their cost of production, economic profit is zero. Therefore, if demand falls, causing prices to go down even a little bit, all of the firms in the industry will immediately shutdown.” True or false? Explain.
What factors determine the sensitivity of net exports to the interest rate? Consider the cases where net exports are very sensitive to the interest rate and where they are very insensitive. Compare the effect that an increase in the money supply has ..
The US government could not pass its annual budget. As a result, the US government has partially shut-down: roughly about 800000 federal employees of non-essential services are out of work
Suppose that you are evaluating the market for Kellogg's cereal. The prices of Post and General Mills cereals increase. What will happen to Kellogg's cereals?
What is the Law of Diminishing Returns. Discuss a company's two short run options: 1. stay open or 2. shut down.
Pick a good or service and illustrate its market with supply and demand curves. Explain what each curve represents and tell what (specifically) would shift each of the curves. A properly-labeled diagram of the supply and demand curves.
Discuss the salient points of global sustainability, and determine two to three (2-3) ways in which you would achieve global sustainability if you were in a position to do so. Justify your response.
Currently there is a debate about whether high employment rates in the US are the result of cyclical factors or structural factors. Describe this debate? What impact might immigration have on the different types of unemployment?
What will the new Lerner Index be after some time with the new demand curve and market price of 30? What firms survive the new demand curve in the industry and why?
Oligopoly is the predominant market structure in the airline industry. In the express package business, FedEx, UPS, and DHL compete in the global air express industry. In the US, FedEx and UPS are a duopoly.
Illustrate what might cause the world interest rate to rise.
By imposing trade restrictions on imports, the U.S. will eventually see an appreciation of the dollar that will reduce U.S. exports to other countries. and Why?
State Explain how IKEAs expansion has reenergized mature markets around the world also changed the competitive situation.
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