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Which of the following statements is correct?
a. If a firm decreases the price of its product and demand for the good is inelastic, its total revenue will decrease.
b. If a firm decreases the price of its product and demand for the good is elastic, its total revenue will decrease.
c. As the price of X falls and we move down an individual's demand curve for X, the money income of the individual also changes.
d. The own price elasticity of demand is constant at all points along a linear demand curve.
Suppose we collect the following information from a large number of junior and senior level college students: Give specific interpretations for the coefficients in the model, and discuss whether or not they make sense. Based on this equation, what co..
The Bank of England has switched from interest rate cuts to "quantitative easing" This policy involves buying bonds from commercial banks in the hope that these institutions will again lend in vast quantities to businesses and individuals after sitti..
Explain why, even though free trade may be good for the economy, we still have trade barriers (tariffs, quotas, regulations, subsidies, etc.) Relate your answer to the Stolper-Samuelson theory and the concept of “specific factors.”
Explain what the GDP cost index is and what is its role in differentiating nominal GDP and real GDP.
Intellectual property refers to the rights of intangible property (IP) such as copyright, trademark, patents, and trade secrets. Explain the rights and responsibilities a company has in protecting its IP and the employees' responsibilities in protect..
Prepare a Cash budget for the Quarter ending 30th September 2014 and prepare a schedule of cash receipts from debtors for the period ending 30th September 2014.
What are the similarities and differences in free versus fair trade arrangements? How are these reflected in the actual prices of coffee? Are fair trade principles both an effective and economically efficient trading mechanism? Is fair trade coffee s..
What economic factors are taken into account when measuring GDP? b. What makes GDP an effective measure of living standards? c. How might quality-of-life measures be determined and measured?
(a) What is market concentration and how can you know whether a market is concentrated or not (b) What are the causes of market concentration (c) Are business mergers good or bad for the economy Explain why
Zelda Manufacturing has are unique product that sells for $15 per unit and marginal cost is $7.50. Conclude Lerner index for Zelda Manufacturing. Does this index indicate market power.
Analyze the challenges that companies face in entering global markets. Identify the potential impact to capital budgets in making the decision to move into a global market.
Mary has borrowed $125,000 at 8% from her parents. She is asking Kevin for $75,000 to start her own business. Kevin requires that the business make a 12% rate of return. What is Mary's before-tax cost of capital?
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