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You are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. In addition to the large number of generic products in your market, you also compete against major brands such as Coca-cola and Pepsi. Suppose that, due to the successful lobbying efforts of sugar producers in the United States, Congress is going to levy a $0.50 per pound tariff on all imported raw sugar-the primary input for your product. In addition, Coke and Pepsi plan to launch an aggressive advertising campaign designed to persuade consumers that their branded products are superior to generic soft drinks. Explain how will these events impact the equilibrium price and quantity of generic soft drinks?
If the Federal Reserve sells government bonds, will short-term interest rates rise or fall. Explain how this will affect aggregate demand and the rate of growth of the economy.
Illustrate what effects could be taken, comprising monetary and-or fiscal policies
Identify whether the subsiquent issues are macroeconomic or microeconomic and explain why you categorized them in that way.
A rise in average variable price always increases the degree of operating leverage for firms making a positive net profit.
Consider the Figure below that represents a perfectly competitive firm
The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local market to sell gasoline to consumers.
Describe how global competition impacts my organization. Should the Starbucks industry reduce production or shutdown their operations.
Compute the elasticity of demand for every parameter.
Suppose the price elasticity coefficient anticipation of the Christmas season. Estimated 4th quarter sales volume will be.
Suppose you are running a photo copy center that makes illegal copies of the textbook. An illegal copy of the book sells for $10 and you only have one copy machine.
Explain how much would she need to make in revenues to earn positive accounting profits. If a firm makes positive economic profit it means that the firm earns normal profit.
Compute the companies concentration measure. Explain how would it change if Delta merged with United States.
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