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One of the reasons Joseph SchumPeter argued that capital was doomed was because he predicted that big corporations would naturally shift away from risk taking entrenuership in favor of low risk managerial strategies. Has this happened? Have major corporations been unwilling to adapt to the times and meet competition head on? Are corporate executives better described as risk averse managers then entrepreneurs willing to take a chance?
Suppose the price of product B increases to 3. What happens to quantity demanded of both products?b. Calculate the arc cross-elasticity between product A and product B using prices for product B of 2 and 3. c. Are these goods substitutes or complemen..
What is the underlying message of the following lyrics from Keynes? [Keynes] Public works, digging ditches, war has the same effect. Even a broken window helps the glass man have some wealth.
How will an increase in ethanol production impact the supply and demand for corn, soy beans, and other alternative fuel resources What impact might this have on other goods and services dependent on these resources
Which of the following is an example of "supply-side economics"? A. an investment tax credit B. a one-time tax rebate to low-income families C. a new Medicare drug benefit for the elderly D. an increase in Social Security benefits E. all of the above
The Burrito Barn is considering a price reduction on the Firegut Burrito. Giuseppe, the proprietor of Burrito Barn, has recorded sales data at different price levels over the last year. He is quite confident that no other demand factors, such as c..
Economics is profitable for a firm to continue employing additional resources?
Suppose a monopolist can purchase Labor at a price w = 36 and can purchase Capital at a price r = 25. The monopolist's production function is given by Q = L1/2K1/2. The demand facing the monopolist is given by P = 180 - 3Q. a) What is the Monopol..
When a perfectly competitive firm finds that its market price is below its minimum average variable cost, it will sella. any positive output the entrepreneur decides upon because all of it can be sold. b. nothing at all; the firm shuts down c. the ou..
When Coca Cola introduced a new, low calorie version of Coca Cola called C2, despite a major marketing effort, sales of C2 were weak and by the fall many doubted that the product would last. Coke's experience with C2 illustrates the economic conce..
What are the characteristics of a monopolistically competitive market and how do these differ from perfect competition?
Two suspects are arrested and charged with a crime. The police lack sufficient evidence to convict the suspects, unless at least one confesses. The police hold the suspects in separate cells and explain the consequences that will follow from the a..
Sales associates carry personal digital assistants to relay information on fashion trends and customer demand back to the company's team of 200 designers in Spain. Real-time sales data allow the factory to increase production of items that are sel..
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