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A small-volume foreign auto maker limits the number of its franchised dealers in the United States and gives them exclusive territories. There are also non-dealers who have no official connection with the manufacturer. They buy its cars overseas and sell them in the United States, a phenomenon sometimes called a "gray market." If you are a manufacturer do you necessarily want the gray market to cease to exist? Why or Why not?
What is the mechanism by which the central bank announcing an inflation target translates into an actual inflation rate and how would your answer to q1 change if households had rational expectations
Elucidate why is it that market leaders and monopolies generally acquire rather than develop new technology.
Think about a company that has been a state-owned, natural monopoly. If it is privatized, what kind of regulatory policies could the government follow, and what impact might they have on the firm.
Suppose that Al, Beth, Carol, David, and Ed receive incomes of $500, $250, $125, $75, and $50, respectively. Create and interpret a Lorenz particular level of total income.
Last month, Rick's Bike Shop, Inc. increased the price on the 22-ounce can of Camp A bearing grease by 4.5 percent. In response, sales dropped by 9 percent. A) Calculate the point price elasticity of demand for Camp A bearing grease. B) Calculate..
Hurricane Katrina may sting United State economic growth through choking energy supplies even as damages caused by the storm spur massive rebuilding and emergency government spending.
Four mutually exclusive projects are being considered for a new two-mile jogging track. The life of the track is expected to be 80 years, and the sponsoring agency's MARR is 12 percent per year. Annual benefits to the public have been estimated by..
How does an expansionary monetary policy work? (Describe the steps through which an increase in money supply affects the real GDP). How does fiscal policy work? (Describe the steps through which an increase in G or TR, or a decrease in TX, affects ..
How much more output each year will have to be produced in the world
Plot the wage- setting and price setting equation or a property labelled graph and identity the nature rate of unemployment.
Lets say that as an worker of the World Bank that I have been proposed to research the requires of a country with a particular economic concern.
Suppose that a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed the following levels of production corresponding to different numbers of workers:
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