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In November 1990, Chrysler Corporation announced plans to initiate three-shift or nearly continuous (21-hours-per-day) production at a number of its plants. Explain why Chrysler's decision might have been prompted by movements in its wage costs or capital costs, or both. Why would Chrysler have instituted this production change for its most popular (and profitable) vehicles, its minivans and Jeep Cherokee? What risks might such a plan pose?
Jessica Alba, a famous actress, starts the baby and family products business, The Honest Company, with Christopher Gavigan. Alba and Gavigan set up their site so that families could choose what kinds of non-toxic, all natural products they'd like ..
Leading up to the crisis of 1997, Thailand had a current account deficit and an economy that was close to full employment, but possibly somewhat above full employment (i.e. there were signs of inflation starting). Where would you put Thailand on t..
Which of the following is (are) most likely to be produced under conditions resembling perfect competition - automobiles, beer, corn, diamonds, and eggs. Defend your answer in economic terms.
A monopolist that practices perfect price discrimination will choose an output level where marginal revenue is equal to marginal cost to maximise profit.
Imagine that you are trying to value a particular piece of wilderness that people use for recreational hiking and cycling. While this area has no entrance fee, statistics have been kept on who visits and how frequently they visit the area.
The following demand and marginal cost equations represent the demand for some service inside the firm. At what price should the service be sold? Would it matter whether there was an external market for this service? The demand function P = 30-..
Suppose the government decides to place a tax on competitive business profits that would cause businesses to decrease output and generate a deadweight loss. Revenues from the tax would be redsitributed to low-income individuals. The decision to le..
Describe the short-run and long-run effects of an increase in the money supply on the equilibrium level of production and the price level.
Raj's Utility bundles of X and Y is given by U(X,Y)=XY A. Fill in the table with Raj's utility for the corresponding bundles x=1 x=2 x=3, y=1 y=2 y=3 B. Write a formula for Raj's indifference curves. Draw one such curve.
where there is a natural monopoly situation there may be a case for government intervention either in the form of price
With regards to the changes within the economic structure, how do politics and government regulation factor into the changes we see to economic activity on both a domestic and global scale What actions have either helped or hindered our progress
How much is his fixed cost? How much is his variable cost and at what level of production is his average cost minimum
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