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Porter's Five Forces Framework
The costs of producing steel declined substantially from building a conventional hot¬-rolled steel mill down to the new mini-mill technology that requires only scrap metal, an electric furnace, and 300 workers rather than iron ore raw materials, enormous blast furnaces, rolling mills, reheating furnaces, and thousands of workers. What effect on the potential industry profitability would Porter's Five Forces framework suggest this new technology has? Why?
The subsequent table gives total output or total product as a function of labor units used. Does the table indicate a situation of diminishing returns.
What distinguishes money from other assets in the economy? What are demand deposits, and why should they be included in the stock of money?
Illustrate what would be the consumer purchasing response to Coca-Cola if the price of Pepsi doubled.
Consider a market-clearing economy in which output (Y 1 )depends only on the capital stock (k 1 ) and an exogenous productivity variable ( θ1 ) according to the production function y1 = θ 2 f(k 2 ).
Suppose Firm Y's production function is given by the following Cobb Douglas equation
Illustrate what are the major differences among an open and closed economy
Discuss wage determination in a labor market in which workers are unorganized and many firms actively compete for the services of labor.
Pamela Sue, proprietor of Heartland Supermarkets which would like to raise her current sales of corn from 250 bushels per week to 500 bushels per week.
Illustrate what are the effects on American wages and purchasing power of the continued outsourcing of labor overseas. What are some of the reasons for these trends.
Compare and contrast the monopolist and the monopolistic firm Monopolistic competition is an inefficient form of organisation. Discuss
Illustrate in the graph below the deadweight loss (DWL) that would result if this monopolist were allowed to operate as a profit maximizing firm without regulation.
Show whether each of the following statements is true or false, and explain why.
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