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This question focuses on Pricing and exchange rates: On January 1, the U.S. dollar: Japanese yen exchange rate is $1 = ¥250. During the year, U.S. inflation is 4% and Japanese inflation is 2%. On December 31, the exchange rate is $1 = ¥235. What are the likely competitive effects of this exchange rate change on Caterpillar Tractor, the American earth moving manufacturer, whose toughest competitor is Japan's Komatsu in the US market assuming that both companies manufacture their products in their home market? What competitive strategies would you suggest for Komatsu? If the appreciation of the ¥ is expected to continue over the next few years, what strategic alternatives should be considered by Caterpillar, by Komatsu?
Conforming is changing one's beliefs, accepting both the goals and the means of society. What if conformity does not work? What if some individuals who work hard all their life and still aren't be able to achieve wealth?
Natasha has been told that if she reduces the thermostat setting on the heating system at her home by 1 degree, she will be able to reduce her present annual energy consumption of 5,000 kWh of energy by 20%. What is the implicit cost of 1 kWh of ener..
Assume a (perfectly competitive) firm has production technology given by f(L, K) = √ L + √ K. Assume pK = 1 = pL and compute its (long-run) supply schedule. Where in the analysis do you invoke the assumption of perfect competition?
Recently, a bank was trying to decide what fee to charge for "expedited payments"—payments that the bank would transmit at a faster speed to enable customers to avoid late fees on cable TV bills, electric bills, and the like.
If MC was $10 per unit, how much would the firm chose to produce? If FC was $200, how much does the firm earn in profits?
Explain how does marginal analysis affect goods and services, efficiency, equity, and on market economy.
Walmart.com announced that it wants to be "the most visited, most valued online retail site." Suppose you were hired by an outside consulting firm to evaluate Walmart.com's potential to achieve this goal.
The problem is to choose x to maximize f(x;a) = ax- 3x^2, where á is exogenous, subject to the constraint. Calculate the first-order condition for this problem. For this problem, which values of x are on the boundary, and which are in the interior?
I had a hard time grasping Straub and Werning (2014) (no paywall). I understand the general environment, but could someone explain intuitively what exactly the mistake in the original Chamley-Judd calculations was, related to the optimality of zero-c..
Elle is walking to work along a sidewalk next to a road. A truck owned by Fast Distribution Company (FDC) strikes and injures Elle, causing her injuries that result in more than $250,000 in medical expenses. Elle is a resident of Georgia, where the a..
In order for price discrimination to exist
Describe each alternative`s break even pontin unit. At what volume of output would the two alternative yield the same profit.
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