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Global Widgets Corp is a manufacturing company that builds standardized galvanized metal benches for sports arenas and stadiums. It operates three manufacturing facilities; in the U.S., in South America, and in the Philippines. It contracts with local distributors to handle sales and service issues in these regions of the world. By contrast, Intl. Financial Services Inc is a company that directly offers a variety of banking, insurance and securities services in 83 countries. Do you think one of these firms would be more likely to benefit from a de-centralized decision making organizational architecture than the other? Why or why not?
In the 1970s people had become accustomed to high inflation. In 1979, Bank of Canada decided to fight inflation and decreased the money supply growth rates.
Suppose that in a city there are 100 identical self-service gasoline stations selling the same type of gasoline.
Discuss how each of the following developments would affect the supply of the money, the demand for money, and the interest rate. For each case, describe what happens in closed economy and in small open economy. Describe your answers with diagrams.
Suppose you are reviewing an isocost graph. The axis on the graph shows capital units on the vertical axis, and labor units on the horizontal axis.
The following table shows the hours per week supplied to a particular market by three individuals at various wage rates. Calculate the total hours Per week (Q T ) supplied to the market.
What is opportunity cost? Explain with the help of an example, why assumption of constant opportunity cost is very unrealistic? Explain law of demand with the help of a demand schedule and demand curve.
If the price of manufactured goods rises to $6 bushel (a rise of 50%), the parity price of corn as well rises by 50% - to $4.50 in this hypothetical example.
For a perfectly competitive firm the price is $2 per unit. At this price the firm is producing and selling 10,000 units. It costs $1.50 to produce the last unit. Should the firm produce more? Less? Why?
If your payroll (budget) is increased to $120,000, what should you do to maximize the number of customers served?
How is interest rate described? Why is there a lower present value of goods to be delivered in future? What are their respective interest rates? Illustrate the adjustments which you think will ensue.
List and explain the sources of expenditures in economy by focusing on the 4 major sectors of economy.
Why is it not surprising to find that in an oligopoly which sells a basically undifferentiated product like chicken growth hormone all the firms change prices simultaneously, even if there is no explicit price fixing?
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