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What factors are important in addressing the dilemma facing Frito-Lay? What are your recommendations and discuss specific implementation tactics for your recommendations?
Explain with graph what happens to aggregate demand curve, and/or aggregate supply curve for the following situations: Consumers expect the price of the good to rise in the future.
Recycling paper is often praised because it allegedly (ostensibly) helps to preserve forests. Under which assumptions is this a sound economic argument? Are these assumptions realistic? What happens if they are abandoned?
Your company has the opportunity to make an investment that promises to pay $24,000 after 6 years. If your company has a required return of 8.5% on this type of investment, what is the maximum amount that the company should pay for the investment? Ex..
A firm’s labor demand and labor supply equations are shown below. The workers, thinking that their wages are too low, decide to strike. After tense negotiations, the firm decides to raise the wage by 20 percent.
Suppose the demand function is Q = 200 - 2p. Firm A, the leader, acts before Firm B, the follower. Both firms have a constant marginal cost of 10. Draw a diagram with Firm A’s output on the horizontal axis. Show the best-response function of Firm B. ..
Crossing the San Francisco Bay] There are 2 main ways to enter San Francisco from Berkeley. The Bay Bridge provides access by car and takes 10 minutes if it is not crowded. In this problem, explain what externality arises from the use of the Bay Brid..
Smith Co saw a reduction in quantity of widgets is sold, down to 900 units. What is cross elasticity of demand between two brands of widgets.
What arguments can be made for charging a lower than the profit-maximizing price. What price from the available prices do you recommend.
Assuming Mr. Delaney decides to keep the body shop, and the consultant reports that it is feasible to raise prices, should Mr. Delaney do so. If he does, illustrate what general guide can you suggest as to how much price should be increased.
Which of the following is not an assumption of the theory of consumer behavior described in this chapter? In deciding what to buy, the consumer will choose the good with the:
Illustrate what are the opportunity costs of producing X and Y for Leah and Tim; and if specialization is possible, which good should Leah specialize in? and How about Tim.
Does this event increase or decrease demand and/or supply? How does this change in demand and/or supply affect the equilibrium prices and quantity in the market? In other words, do they increase or decrease? Find the new equilibrium and compare it wi..
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