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1. U.S cigarettes makers face enormous punitive damage penalties after losing a series of class-action lawsuits that heaped penalties amounting to several hundred billion dollars on tobacco industry. In spite of the huge penalties, The Wall Street Journal reported; "The damage (to cigarette makers) is generally under control". What action do you suppose the cigarette companies took to avoid bankruptcy? Why did this action succeed? Explain.
2. After two quarters of increasing levels of production, the CEO of Canadian Fabrication and Design was upset to learn that, during this time of expansion, productivity of the newly hired sheet metal workers declined with each new worker hired, Believing that the new workers were lazy or inefficiently supervised, the CEO instructed the shop foreman to "crack down" on the new workers to bring their productivity "cracking down" can increase worker productivity at Canadian Fabrication and Design?
3. At the management luncheon, two managers were overheard arguing about the following statement: "A manager should never hire another worker if the new person causes diminishing returns". Is this statement correct? If so, why? If not, explain why not?
Assuming that there are only two goods, and the other good (food) is capital intensive, show the equilibrium points of production and consumption in ALFA, before and after trade.
Show that the government can achieve the social optimum by setting the correct tax prices a, b, and c. What prices should it set?
Describe the neoclassical theory of economic growth. Then explain how the neoclassical theory is impacted by research about endogenous technological changes and increasing marginal returns.
Dr Leona Williams a well know Plastic Surgeon, has reputation for being one of best surgeons for reconstructive nose surgery. Dr Williams enjoys a rather substantial degree of market power in this market. She has estimated demand for her work to b..
Find out the optimal weekly output and price of this firm. Find out the weekly profit from the production and sale of this product.
What is the main policy message of the AS-AD model, and how does it relate to the 1930s Keynesian revolution in economic theory? What should today's policy-makers assume about the natural rate of unemployment?
Write a 400- to 700-word memo to the economic adviser. Describe the change in tax revenues for the government in the new equilibrium, in both the short and longer terms.
Mention and describe the three theories for why the short-run aggregate-supply curve is upward sloping.
Construct a table showing the marginal failure reduction (in units) and the dollar value of these reductions for each inspector hired.
Compute the price or output combination and the total economic profits which would result if competitors offer clones which make the QuickerBetter market competitive.
Use diagram to describe how each of the following events affects the equilibrium price and quantity of pizza (draw a separate diagram for each event)
Credit cards are sometimes discussed as a public problem. In 2001, purchases on credit cards accounted for 21% of consumer spending in America, which has the lowest savings rate of any big country.
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