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Consider data on U.S. Pizza Sales from 2005. The market shares of the top 4 firms was 17% for Pizza Hut, 11% for Domino’s, 6% for Papa John’s, and 2.5% for Little Caesars. Firms 5 through 25 combined summed to 14.5%, and all other independents outside the top 25 selling firms comprised the other 50% of industry sales.
What is the 4-firm concentration ratio for this industry?
Suppose life is discovered on Mars and that it turns out to be quite sophisticated. In fact, perfect competition prevails everywhere on the planet. Which of the following characteristics of Martian firms are we likely to observe.
Testifying at a price fixing trial involving Cargill Corp. and the market for chicken growth hormone, (in which the Cargill is one of only three firms worldwide), an executive for Perdue said: "It's an oligopoly. When one (firm) changes price, they a..
A property, if sold today. will provide the equity investor with $250,000 in cash flow after taxes. If the property is held, the annual after-tax cash flow received by the investor is expected to be $23,000 per years 1 to 5. If held and sold in 5 yea..
Suppose that demand for a product is Q=140-6P and supply is Q=2P-20. Furthermore, suppose that the marginal external damage of consuming this product is $4 per unit. Does it result in under consumption? Or over consumption? How many more or less unit..
Use “John Maynard Keynes – capitalism faces its challenge,” in Big Three in Economics by Skousen as your resource to answer the following questions: What was the economic context in which Keynes was writing? How did that affect his economic views? Wh..
A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price = 150- 0.01 x Demand for an annual printing of this particular product.
What of GDP growth over the past two years: include an assessment of the overall trend line of growth for the previous three years, and government estimates of growth over the next year?
When wages increase, will the typical person work more or less? Explain your answer using microeconomic theory. (Note: The substitution and income effects for leisure demand are an important part of this topic).
There is no way to identify family types for pricing purposes also all costs are fixed so to maximizing total income is equivalent to maximizing profit.
Why does Michael Porter admonish companies will not change his competitive positioning any more regularly than once every four or five years.
If interest is compounded at 15% per year, how long (i.e., the number of year-long periods) will it take for $50,000 to accumulate to $66,125? Hint: you can check your work using the FV function in Excel with the annual payment set to zero, since we ..
Consideration is being given to the investment of $420,000 at time zero for machinery and equipment to be depreciated using 7 year straight line depreciation starting in year 1 with the half-year convention. Annual sales are projected to be $450,000 ..
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