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Select a U.S. multinational company. In terms of currency denomination, discuss how the firm prices its revenues and costs. For MNE's with multiple foreign operations, consider any one of those operations and the contribution it is making to the parent firm's profits. Using this information, what do you think would be the effect of increases/decreases in the dollar's exchange value on the firm's profitability? Be sure to show all applicable work.
Engineers at national research laboratory built a prototype automobile which could be driven 180 miles on single gallon of unleaded gasoline. They estimated that in the mass production the care would cost 40k for each unit to build.
Rover plus, a pet product store, is considering pricing a new RoverPlus labeled dog food. The company will buy the premium dog food from a company in Indiana that packs the product with a Rover Plus label.
Would you rather earn a 4 % nomical or 4% real interest rate? Illustrate by describing the difference between nominal and real variables.
Find out the optimal weekly output and price of this firm. Find out the weekly profit from the production and sale of this product.
Suppose a product sold in a competitive market is subject to a government price control. Suppose the regulated price is less than the free market equilibrium price.
Suppose that Hump Ridge Company produces and sells two products, x and z, and that its total cost is given by-What does λ equal? What does it mean?
Suppose that rich countries surprisingly commit to much higher official aid, to be maintained for several decades. What would be the effect of such aid on?
Social Dynamo Corporation earned profits last year of $49 million on sales of $500 million. During the same period, its major competitor - EIO Corp.- enjoyed sales of $490 million and earned profits of $52 million.
Consider a competitive market for which the quantities demanded and supplied (millions per year) at various prices are given as follows:
In article on the steel industry, The Wall Street Journal noted that as steel prices were falling, steelmakers were not cutting production
Using a supply and demand graph, make one shift of wither the supply or demand curve to illustrate the likely result of this action.
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