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Fischer Skis has been producing high quality skis for a long time with no change to any market conditions. Answer the following question(s) about Fischer Skis in relation to the ski industry assuming that the ski industry is a competitive constant cost industry.
a. Given that all firms have had plenty of time to adjust K and L levels, graph the current state of Fischer Skis in relation to the Ski Industry as a whole.
Be sure to include (i) the ski industry’s equilibrium price and quantity; and (ii) Fischer Skis’ equilibrium price and quantity; and (iii) all relevant firm and industry curves and labels as seen in the lecture.
Intel made large loyalty payments to HP in exchange for HP buying most of their chips from Intel instead of rival AMD. AMD sued Intel under the antitrust laws, and Intel settled the case by paying $1.25 billion to AMD. What incentive conflict was bei..
Illustrate what is the total number of wells which maximizes the sum of the profits of both firms.
Suppose an economy’s real GDP is $46,000 in year 1 and $49,200 in year 2. What is the growth rate of its real GDP? Assume that population is 100 in year 1 and 102 in year 2. What is the growth rate of real GDP per capita?
Outline reasons why the marginal revenue product differs between workers in different jobs.
A petroleum engineer estimates that the present production of 400,000 barrels of oil during this year from a group of 10 wells will decrease at the rate of 15% per year for years 2 through 10. Oil is estimated to be worth $25 per barrel. If the inter..
How would each company determine the location of their facilities? List the specific needs and requirements of each company when determining location.
From the e-Activity, identify the company, the accounting impropriety or illegality, how it was detected, the outcome, and propose a strategy that might have prevented the situation. Indicate how the strategy should be implemented.
Suppose that the citizens of Hungary can purchase all the oil they desire at the going international price. If the Hungarian government levies a tax on oil, who bears the burden? Illustrate your answer wit h a supply and demand diagram.
Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $75,000 and her store made $130,000 in profits (not counting payment to her top manager). She suspected t..
Use a money supply and demand diagram to answer the following problem: Everything else being the same, what is the effect of an increase in interest rates on the price level? Discuss the process of adjustment to the new equilibrium.
Explain how would constraints on financial resources vary with private pay, versus Medicare, charity or Medicaid pay as primary revenue streams for your facility.
Calculate the currency-to-deposit ratio (cr), and the money multiplier (m) given the above values. Calculate total required reserves (RR), total actual reserves (AR) and the monetary base (MB). Now assume the FED lowers the required reserve ratio to ..
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