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Bradford is a small town that currently has no fast-food restaurants. McDonald's and Burger King both are considering entering this market. Burger King will wait until McDonald's has made its decision before deciding whether to enter. McDonald's will choose between building a large store and building a small store. Once McDonald's has made its decision about the size of the store it will build, Burger King will decide whether to enter this market. Use the following decision tree to decide the optimal strategy for each company. Does your answer depend on the rate of return that owners of fast-food restaurants must earn on their investments to break even? Briefly explain.
Define economies of scale. Is there evidence of economies of scale in the airline industry. Consider Low-Cost-Carriers. In large commercial aircraft manufacturing
What are the profit-maximizing price and quantity and what will be the profits at these price and output levels - what will be the profit-maximizing price, output, and profits? Who bears the burden of the tax? Why?
Monopoly. Pharmaceutical companies are often accused of exploiting the sick and vulnerable to earn huge profits on their patented drugs, because the physical cost of producing these drugs are only a fraction of the ultimate price consumers pay. A. Wh..
Recommendations on how to staff this new 60 guest product line.
go the web site containing the penn world table and collect data on real gdp per capita chained series for 19770 for
a 7 coupon bond issued by the state of new york sells for 1000 and thus provides a 7 yield to maturity. for an investor
Identify three firms you might want to work for. Using the VRIO framework, evaluate the extent to which the resources and capabilities of these firms give them the potential to realize competitive disadvantages, parity, temporary advantages, or susta..
You are the manager of a monopolistically competitive firm. Your demand function is: p=25-Q, and your cost function is : TC=5Q. Respectively MR=25-2Q and MC=5. Determine the firm price, output and profits. Explain. What will happen in the market in t..
In music ville , the price elasticity of demand for CD players is 1.3, the income elasticity of demand for CD is 0.4, and the cross elasticity for CD players with respect to MP3s is 0.1 CD players are? A] inferior goods, b] complements c] substituts ..
Why is it possible to change real economic factors in the short run simply by printing and distributing more money? Explain why a stable 5% inflation rate can be preferable to one that averages 4% but varies between 1-7% regularly.
A. Define each of the following: 1 Gross Domestic Product at Market Prices. 2 Gross National Product at Market Prices. 3 Gross National Product at Factor Cost. 4 National Income. B. Explain the relationship between Gross National Product at Market ..
what does the term economizing problem mean for an individual and for society? as part of your answer include the four
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