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Strong Dollar
Your company operates in the MS Delta and imported inputs are used in the final product. The final product is then exported to the rest of the world. The Secretary of the Treasury, Tim Geithner, made the following statement to the Chinese students at Beijing State University some time ago in an attempt tame fears that the US is following an easy monetary policy which is leading to the US dollar losing its power against the currencies of its trading partners: The US is committed to a strong dollar policy! If you believe the Secretary, what is the impact of his stated policy on your business? Suppose you do not think that the statement does have any credibility. What is the expected impact of the resulting policy on your business? In both cases, under what circumstances, would your business may be better off?
A firm has estimated the following demand function for its product: Calculate the advertising elasticity of demand and explain its meaning.
Explain, illustrating with graphs as necessary-be sure that the shape of your supply and demand curves make economic sense.
Determine the profit maximizing level of output and price. Is this long run equilibrium? According to the theory of monopolistic competition, do you expect entry or exit taking place in this industry?
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Michael can buy either pizzas or submarine sandwiches. If the prices of pizza and submarine sandwiches double and Michael's money income triples, we can conclude that Michael's budget constraint will
Illustrate what interest it should be used in project analysis calculations.
As the author listed as the 1st profit of creation of approx 1000 private sector jobs. Describe the logic of this statement.
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Illustrate what is the relationship among the variable selected and the economy. What trends do you see in the data sets.
Describe the factors in Michael Porter's "Five Forces Model" that affect the ability of any comapny in an industry to earn a profit.
Explain What the profit maximization condition of a business. What is normal versus supernormal profits.
Assume that the soft coal industry is a competitive industry and it is in long run equilibrium. Now assume that the firms in the industry form a cartel.
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