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Q1. Why may vertically integrated delivery systems lead to lower productions costs? Why may these systems lead to higher costs? Use agency theory and transaction cost economics in your explanations.
Q2. Explain the concept behind the governments TARP program and the ensuing stimulus packages that were implemented?
Q3. Suppose that in the situation shown below, True Image's profits are $1.5 million if the firm accepts Dell's contract offer of $20 per copy. Now will Dell offer True Image a contract of $20 per copy or a contract of $30 per copy? Briefly explain.
Despite this finding, the government mandates that new cars have air bags, rather than taxing their use. Is this policy a contradiction.
How can a compensation scheme designed to enhance worker motivation lead to this result.
Which is a tax on profits generated from mining of iron ore and coal.
Idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
It comes to global expansion and setting up affiliates aboard, how is a service company's focus different from that of a manufacturing company
The 2001 recession ended in November 2001, but the perception of "bad economic times" lingered into 2002 and 2003. What evidence do these graphs provide concerning the lingering perception of a recession.
Calculate and interpret the own price, cross price, and income elasticity of demand.
The US put a specific tariff of €10 on European widgets. Calculate the new equilibrium quantity and price as well as the new Monopoly's profit.
What would be the new equilibrium in this economy if Investment increased by $12.
In 2003, when music downloading first took off, Universal Music slashed the prices of CDs from an average of $21 to an average of $15.
Write down the budget constraint of the representative consumer and Write down the maximization problem of the representative consumer and find labor supply
Find Equilibrium GDP (Y). If potential GDP is 1950, is the economy in a recessionary or inflationary gap. Suppose that the MPC, falls to 0.75, so C = 0.85DI. Find Equilibrium GDP.
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