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1. Oligopolistic firms:
A. may seek to drive competitors out of business for personal reasons, even at great expense.
B. do not pay attention to a competitors prices because there's nothing they can do about them.
C. would not drive competitors out of business to gain control of the market.
D. know that their competitors pay no attention to their pricing decisions and therefore hope to gain market share by lowering price.
2. The line which forms a 45-degree angle in the Keynesian cross model is
a. aggregate supply line.
b. income line.
c. aggregate demand line.
d. both a) and b) are correct.
The terms of the loan are not renegotiated, so the borrower has a guaranteed nominal interest rate of 10%. What is the expected real interest rate for this loan?
he R. J. Jones Company is a publisher of cowboy novels - novels about the great western experience, where men were men, horses were horses also well, you get the idea.
An MBA student has proposed the following demand equation for good Y. QdY = a + b PY + c M where: QdY = quantity demanded of good Y in millions of tons per year PY = Price of good Y in dollars per ton M = Average consumer income in thousands of dolla..
What is the marginal revenue product of labor (MRP)? What shape does the MRP curve have? Why? What is marginal factor cost? How is it related to the supply curve of an input?
A candidate in the group is proposing a national sales tax to replace our personal income tax. Analyze this tax proposal to help your candidate understand its merits and demerits, so that she knows how to attack him.
If the annual real interest rate on the loans is 6%, explain how many car companies will buy a new car assembly machine.
Determine how sensitive the decision to invest in the new facility is to the estimates of initial cost and net annual revenue. Use a MARR of 4% per year and a 5-year study period.
Illustrate what do you think causes changes in each of the expenditure (spending) components of GDP thereby causing changes in our economy's output, employment, and income levels.
Suppose that your employer offered you $4,000 in cash instead of health insurance coverage. Health insurance is excluded from state income taxes and federal income taxes. How different would this calculation look for a worker who earned $500,000 and ..
The Blue Dragon Restaurant is a new Chinese Restaurant in town. As the only Chinese restaurant in the area, it faces the following daily demand curve: Determine the profit-maximizing price of each meal assuming The Blue Dragon is behaving as a monopo..
You are the manager of a firm which produces also markets generic type of soft drink in a competitive market.
Connect Andrew Carneige's Wealth and it's Issues and Mother Jones' March of the Mill Children to a larger theme or idea. How do these two documents relate to each other? Wealth and it's Issues talks about how Carneige believes the wealth should be di..
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