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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 suh as Coca-Cola and Pepsi. Suppose that, due to the successful lobbying efforts of sugar producers in the US, Congress is going to levya $.50 pern pound tariff on all imported rall sugar-- the primary input for yur product. In addition, Coke and Pepsi nplan to launch an aggressive advertising campaign designed to persuade cosumers that their branded product are superior to generics soft drinks. How will these events impact the equilibriumn price nand quantity of generic soft drinks?
From this information, can you devise a general rule explaining how the Herfindahl-Hirschman index is affected when exactly two firms in the market merge? (Hint: compare a2 + b2 with (a + b) 2)
Describe the reliability of the forecasts. Illustrate what do you tell him about these forecasts and their accuracy to help him make his decision.
Early Classical economists found following diamond or water paradox perplexing: Why is water, which is so useful and so necessary, so cheap.
Monetary theorists maintain that to eliminate the business cycle, it is necessary to eliminate,Through 2005, the most serious U.S. trough since the Great Depression was the one that occurred in,According to monetary theories of the business cycle, fl..
Suppose that in Canada the opportunity cost of producing two television sets is three bushels of wheat. Suppose that in the United States the opportunity cost of producing 2 bushels of wheat is 3 television sets.
Explain why does the government support public education when the private sector also provides this service and describe why labor productivity is important but not the only key to improvement in living standards.
Studies indicate that the price elasticity of demand for cigarettes is about .4. If a pack of cigarettes currently costs $2, and the government wants to reduce smoking by 20 percent, by how much should it increase its price?
What are the implications for the design of monetary policy frameworks and what domestic factors does the Report identify as likely to affect the UK economy?
Explain whether the evidence above suggests whether the dollar is appreciating or depreciating relative to the Euro. What is your conclusion? Explain how you come to that conclusion.
Explain the effects of these shocks on the price level, real GDP, and the nominal interest rate. Use an upward-sloping, short-run supply curve in your analysis.
Assume that there are many countries capable of producing two goods, and that each country has only one factor of production, labor.
Determine the price elasticity of demand for a resource. Why is it important and what is it used for.
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