Why is inflation risk a business management risk

Assignment Help Business Economics
Reference no: EM13546085

1. Problem-solving question: Use the following data for a pure monopoly to calculate the firm's:

(a) total revenue, marginal revenue, marginal costs, and average total cost;

(b) its profit-maximizing output level and produce price;

(c) its profit.

(d) Use the price-cost formula to determine whether or not the firm's operations are productively-efficient. (e) Use the price-cost formula to determine whether or not the firm's operations are allocatively efficient.

     Q    (P = AR)   TR    MR     TC       MC      ATC

     0      $120                 $100

     1       119                  200

     2       118                  280

     3       117                  340

     4       116                  380

     5       115                  400

     6       114                  460

     7       113                  560

     8       112                  665            

2. (a) Identify three types of competition that most firms encounter other than competition from other firms in their industry in their home country.

Legislative( taxes, tariffs), natural ( technology, copyrights, patents).

(b) Is it good for the economy to have more competitive markets? Explain.

(c) If government industry regulators underestimate the degree of competition in an industry are they likely to over-regulate the industry? Explain.

3. (a) Economically, when is it best for a firm to outsource or contract-out some part of its production?

(b) Provide an example of a business task or operation that it would make sense to outsource.

(c) Provide an example of a government task that it would be economically efficient to contract-out.

(d) Is there any risk to outsourcing? Explain.

(e) For a task that is already outsourced, could it make sense to bring it back in-house at some future time? Explain.

4. (a) Identify two market structures in which product development and product differentiation is an important type of competition for firms operating in those market conditions.

(b) Provide examples of three types of product differentiation that could help make a firm in a particular industry more competitive.

5. (a) Would a minimum-wage law help entry-level workers in somemarket structure; while hurting them in another market structure? Explain.

(b) Would a labor union help workers in some market structure; while hurting them in another market structure? Explain.

6.

(a) Identify and describe four causes (i.e., types of unemployment).

(b) Are some workers more likely than others to be laid off and have a harder time finding another satisfactory job? Explain.

7.

(a) Identify three economic variables that create differences in market interest rates on assets and/or liabilities.

(b) For most companies, are business loan interest rates lower than the interest rates on personal loans for most U.S. households. Explain

(c) Is the interest rate paid by the U.S. government on its short-term Treasury bills (T-bills) usually less than a comparable commercial paper loan to most corporations in the U.S.? Explain.

8.

(a) Recommend some U.S. fiscal policy change in business taxes or government spending that would reduce the U.S. government's budget deficit and also help improve the U.S. economy? Explain.

(b) Would reducing the federal budget deficit also reduce the national debt? Explain. (c) What's wrong with raising taxes in a recession?

9.

(a) State two economic principles of taxation.

(b) Which principle best justifies the excise tax on gasoline, when the tax revenue is used to maintain or improve the roads? Explain.

(c) Which principle best justifies the progressive U.S. taxation of corporate profits? Explain.

10.

(a) Define the inflation rate.

(b) Explain how the CPI differs from the PPI, as a measure of the U.S. inflation rate.

(c) Why is inflation risk a business management risk?

(d) Which would be better, for the U.S. economy, a low stable inflation rate or deflation? Explain.

(e) What U.S. government organization is primarily responsible for controlling the U.S. inflation rate, while helping to reduce cyclical unemployment and increase the U.S. economic growth rate?

Verified Expert

Reference no: EM13546085

Previous Q& A

  Find by how much would the moment of inertia change

will true moment of inertia of the dumbell system be larger or smaller than I=2MR^2M suggests? if Rm where to double by how much would the moment of inertia change

  Depict the skeletal structure of (ch3)3cch2chc(ch3)2

I do not understand how to draw the skeletal structure of (CH3)3CCH2CHC(CH3)2 and (CH3)2CHCHCHC(CH3)3

  What is the period of rotation of the disk now

A jewel smith wishing to buff a finished piece of jewelry attaches a buffing disk to his drill. What is the period of rotation of the disk now

  What is the height of the image on her retina

A student is reading a lecture written on a blackboard. The lenses in her eyes have a refractive power of 56.11 diopters, and the lens-to-retina distance is 1.791 cm. (a) How far is the blackboard from her eyes? (b) If the writing on the blackboard i..

  Define superficially porous particle requires lower pressure

Explain why the 2.7 μm superficially porous particle enables separations similar to those achieved by 1.8 μm totally porous particles, but the superficially porous particle requires lower pressure.

  Explain the largest intermolecular dispersion forces

Of Br2, Ne, HCl, HBr, N2 which is likely to have a) the largest intermolecular dispersion forces and why

  Obtain the magnitude of the charge density on each plate

parallel-plate capacitor with area 0.500m^2 and plate seperation of 2.00mm is connected to a 9.00-V battery. Find the magnitude of the charge density on each plate

  Explain difference solutions absorb specific wavelengths

Explain why there is a direct relationship between the concentration of a solution and a solution's absorbance of light. Why do difference solutions absorb specific wavelengths of light and not all wavelenghts of light

  How long did it take the apple to fall

An apple falls from a tree and takes 4 s to reach the ground as reported by the earth-bound observer. how long did it take the apple to fall

  Find at what speed is the bat gaining on its prey

A bat moving at 7.2 m/s is chasing a flying insect. The bat emits a 43 kHz chirp and receives back an echo at 43.68 kHz. At what speed is the bat gaining on its prey

Reviews

Write a Review

 

Similar Q& A

  Why is market power an important element in rule of reason

Why is market power an important element in the rule of reason treatment of tying contracts?

  Illustrate what cost should each industry charge if it wants

Illustrate what cost should each industry charge if it wants to maximize its profit. Why are costs and output of industries 1 and 2 same however different for industry 3.

  Illustrate change in clean-spring profit-maximizing level

illustrate what is the change in Clean-Springs' profit-maximizing levels of output, price and profit. Explain in words and with graph.

  Evalute with confidence the decrease in percentage support

Evalute with 95% confidence the decrease in percentage support between now and 6 months ago.

  Elucidate what evidence of excess supply or excess demand

Elucidate what evidence of excess supply or excess demand can you cite in these examples.

  A major statistics canada household survey

A major Statistics Canada household survey, the Survey of Labour and Income Dynamics or SLID, the latest of which is referred to as SLID 2009.

  Explain how much interest on interest was earned

If interest paid on the account was compounded annually, explain how much interest on interest was earned.

  Microeconomic and macroeconomic phenomenon

Elucidate an example of a microeconomic and macroeconomic phenomenon. Would you give an example of a microeconomic decision you have made at home or work.

  Market demand for polyglot at the price established

The aggregate marginal cost function for the other manufacturers of polyglot. Illustrate what is the total market Demand for polyglot at the price established by Alchem in Part

  Write a paper addressing the following questions and

write a paper addressing the following questions and reflections.part a stakeholders amp interrelationships 1. describe

  Politicians use to manage and influence

Do current politicians use to manage and influence to get reelected. Is this a "valid" use of political power.

  How would your conclusion change if mathew purchased a new

How would your conclusion change if Mathew purchased a new smart-phone app that could show the status of the highway traffic prior to their drive each morning, thus reducing the probability of them getting into a jam down to only 1day per month.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd