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Wendy's narrowed the vanillas to two varieties and brought more than 100 consumer testers into stark white tasting booths at its head headquarters. The testers were told to take at least three bites of each sample before deciding which they preferred. They picked the sample with the stronger cotton candy flavoring. But a few said they didn't like the idea at all. "Vanilla is just not Wendy's," one tester wrote after sampling it. Since Wendy's launched the vanilla frosty in July, Frosty sales have increased 25% (Based on: Janet Adamy, "Why No.3 Wendy's finds Vanilla So Exciting," Wall Street Journal April 6, 2007.)
Estimate the cash flow to be included in the horizon year and what will be the horizon value if there is no profit growth?
Among the types of expenses faced by a company short-run costs, fixed and variable, as well as long-run costs, how can technology help companies to decrease their costs?
If the Federal Reserve buys a $10,000 government bond from an individualin the economy, what is the initial effect on the money supply? What is the ultimate effect on the money supply?
Which of the following statements about the distribution of physicians among specialties is true in the United States?a) The majority of physicians specialize in general/family practice b)There are twice as many generalists as there are specialists
Two partners who owns IT Business Solutions, a company supplying specialist software, operate out of an office in Fourways, Johannesburg but have discovered a vacant office building close to Sandton City.
Suppose that you are on the board of directors of a firm which is the dominant firm in the industry. That is, it lets all of the other firms, which are much smaller, sell all they want at the existing market price. In other words the smaller firms..
Assume you are an aid to a government official planning on some recently proposed excise tax on welfare of her constituents.
If nominal wages and productivity increase by the same amount throughout the macroeconomy, would you expect aggregate supply to increase, decrease, or stay the same What if productivity increases more than nominal wages
HoneyBee Farms, a medium size manufacturer of honey, operates in market that fits competitive market definition relatively well.
Explain why the assumption of imperfect competition is necessary for endogenous growth models. How might well enforced intellectual property rights actually lead to divergence rather than convergence?
Suppose that the price of good X rises and the price of good Y falls in such a way that the consumer's new optimal consumption bundle lies on the same indifference curve as his old bundle. Graph this situation. Compare the quantities demanded be..
If you had a business exporting goods to Britain, and U.S. inflation fell as discussed above in this example, would you plan to expand production or cut back? Why?
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