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Explain, using diagrams, why a monopoly can potentially earn super-normal profit in both the short run and the long run, while perfectly competitive firms can only earn normal profit in the long run.
Suppose that the price of good x rises and price of good Y falls in such a way that the consumer's new optimal consumption bundle lies on the same indifference curse as his old bundle. Compare the quantities demanded between the old and new bundle..
Determine how global competition impacts FORD. Should the organization/industry continue, expand, or reduce current operations in order to maximize profits? Explain your reasoning.
When someone owns an asset (such as a stock) that rises in value, he has an "accrued" capital gain. If he sells the asset, he "realizes" the gains that have previously accrued. Under the U.S. income tax, realized capital gains are taxed, but accru..
The company that you manage has invested 5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales
Higher interest rates have an impact on the value of the dollar. What is the effect and how does this relate to foreign trade?
1. Why is there such a difference in Asia's share of global real GDP, depending on whether the computation uses purchasing power parties or exchange rates 2. Why is Asia's "economic size" so much smaller on a per capita basis than on an absolute ba..
A can manufacturing company produces and sells three different types of cans:Versions X, Y, and Z. A high-level, simplified profit/loss statement for the company is provided here. Corporate overhead(rent, general and administrative expense,etc.) i..
What is the total fixed cost for the El Dorado Star? If the total fixed cost increases to $5,000, how many papers should be sold daily for profit maximization?
Equipment initial cost $ 500,000 Equipment salvage value $ 25,000 Annual gross income $ 300,000 year 1 Income gradient years 2 - 5 $ 25,000 Annual gross income $ 400,000 years 6 - 20 Annual operating expenses $ 160,000 first 10 years
The Swiss pharmaceutical global corporation Hoffman-La Roche has made a major breakthrough in the relief of a serious disabling disease that affects 3 percent of the world's population. Its new product Tigason is the first product that effectively..
Suppose that you have just read a review of the literature of the effect of beauty on earnings.
Which of the following best describes what happens when consumer income increases? Which of the following best describes what happens when the price of oranges increases?If the government gives each consumer a tax reduction equal to $600 (i.e. increa..
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