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Of the following three barriers to entry - Economics of scale - barriers created by the government- sunk cost. Explain how these barriers affect a company of your choice
Discuss each of the pricing strategies below. What conditions are necessary to make each strategy successful in terms of increasing profits? The price Company X charges for its ink cartridges is nearly as much as it charges for a printer. Packs of 5 ..
Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
What is a call option for a stock? Suppose the current stock price is $40, and the strike (or exercise) price of the call option is $35. Is the stock option in the money or out of the money? What is the intrinsic value of this call option?
The utility function of a consumer is given by U = log(b) + log(c) where b and c are the consumption levels of barley and corn. Assume that the price for both goods is $1 and that the consumer has an income of $100. Assume that the government introdu..
Demonstrate in a graph that if the production technology is of fixed proportion type (L- shaped isoquants), an increase in wage rate will cause only a scale effect on labor demand and no substitution effect. will there be any difference between short..
Why is the multiplier for contractionary fiscal policy smaller in an open? economy?
For a single consumer, show the demand curve for three illness, L1, L2, and L3, where the degree of illness increases as the subscript increases from 1 to 3. Need the demand curves be parallel? Could they ever possible cross?
The cost measure sellers use to determine whether or not to produce the optimal (i.e. profit maximizing) level of output is:
Suppose that there is a fixed number of workers. Each worker is at a certain instance either employed or unemployed. What is the rate of job separation (s) ? What is the equilibrium unemployment rate (u) ?
A publisher is considering launching a new magazine for women in the 18–25 years age group. It is thought to be vital to the long-term success of the magazine that its sales should reach break-even point within its first year. Explain why the estimat..
Explain how Feds affect monetary policy, including how they influence interest rates and securities prices and provides examples. Identify important factors of Fed monetary policy, describing tools they use in a descriptive and concise writing style.
Please explain “opportunity cost” and give three examples from your own life. Please include and identify both “explicit” and “implicit” costs in your examples.
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