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An interesting example of strategic behaviour comes from a 1997 article about Microsoft’s investment in Apple (New Straits Times, 1997). The article is included in the Required Readings list. Facing tough anti-trust scrutiny from government agencies, Microsoft provided financial support to Apple in order to ensure Apple’s survival and, therefore, to ensure that competitiveness in the industry remains. Moreover, the partnership with Apple provided an additional market for Microsoft’s products – the MS Office and the IE products were to be bundled with the MAC OS as one of the conditions for this financing. Discuss this case in the context of market structure and strategic behaviour. What market structure do these firms operate in? Why did Microsoft need to preserve competitiveness in the industry? What was Microsoft afraid of in the event that Apple did not survive?
Describe the relationship between price, short-run marginal cost, long- run average cost and short-run average cost in the final long-run competitive equilibrium condition. What are economic profits in this long-run equilibrium condition?
Moving from an economically inefficient to efficient allocation of resources will necessarily increase benefits by more than costs.
you want to invest in a hot dog stand near the ball park. you have a 0.35 probability that you can turn your current
Which of the following products and services are likely to encounter adverse selection problems: golf shirts at traveling pro tournaments, certified gemstones from Tiffany's graduation gift travel packages, or mail-order auto parts
Research, individually, a corporate social responsibility (CSR) policy at a large organization. Prepare to discuss the disadvantages and benefits of the policy with your team. Imagine your team represents the executive committee at an imaginary organ..
as a leader you will be solving a variety of problems. based on the research literature you reviewed propose solutions
A monopolist has two types of customers. There are 100 of TYPE A, who will each pay up tp $10 for a single unit of the good, and 50 of TYPE B, who will each pay up to $8.00.
manner inc. has 5000 shares of 5 100 par value noncumulative preferred stock and 20000 shares of 1 par value common
the unemployment rate in october 2008 reached a 14 year high at 6.5. as of the end of 2008 the recession did not appear
Evaluate the impact of the proposal to cut prices and what is the optimal profit-maximizing markup suggested by economic theory?
Globalization is becoming very important in economic discussions. While some politicians favor protectionist policies because they feel these policies protect domestic producers, others claim free trade increases economic activity and has advantag..
Amityville has a competitive chocolate industry with supply curve Ps =440+Q. While market demand for chocolate is Pd=1200-Q, there are external profits that the citizens of Amityville derive from having
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