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1. How can cross elasticities be used to help define the relevant firms in an industry?
2. Suppose the price of heating oil increases significantly. Discuss the likely short-run and long-run effects.
3. The Alexander Machine Tool Company faces a linear demand curve. Currently, it is selling at a price and quantity where its demand elasticity is 1.5. Consultants have suggested that the company expand output because it is facing an elastic demand curve. Do you agree with this recommendation?
if you could choose between what we called the anglo-american political economy and the continental european model of
A new manager recently was given an project to make two possible wage schemes for a design firm. The manager came up with the following packages:
Potential gains from trade in selling insurance to healthy people are lost unless the company can devise a way to address the adverse selection problem.
Procrastinators Anonymous is hosting their yearly convention this coming year in Dallas, TX. Although this is not typical of this management, they wants to plan ahead to determine what the cost of the keynote banquet ticket should be.
Ccompute the beta of the firm if the risk-free rate is 4%, and the market rate of return is 14 percent.
Does Jake's enjoy economies of scale, diseconomies of scale, or does Jake's appear t be operating at Efficient Scale?
Estimate the price of a stock that has a one-period horizon, is expected to pay a dividend of $.20 per share for period,
Consider the four possible combinations and sketch them if necessary:
What is the cooperative outcome and What is the noncooperative outcome - will they choose the cooperative outcome?
How does the division of labor lead to more efficient production - What are some examples of division of labor and specialization from your personal experiences?
1.For what reasons might the price of foreign holidays rise? In each case, identify whether these are reasons affecting demand, supply, or both.
Define three types of elasticity of demand. Indicate how you would use information from recent research paid by your company that the own price elasticity of your product is -1.2 and not -0.8 as previously thought.
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