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In terms of evaluating investments in corporate philanthropy, which of the following would be considered a "demand condition"?
a. presence of sophisticated and demanding local customers
b. presence of resources used in production, such as infrastructure or human resources
c. presence of clusters instead of isolated industries
d. presence of educational facilities and related nonprofits
e. presence of regulations supporting a competitive marketplace.
Elle preferences over apples (A) and bananas (B) are represented by the Cobb-Douglas utility function; What are the optimality conditions? Explain. Derive her individual demand curves for apples and bananas as functions of the prices and income.
Why is this statement wrong: "Economists argue that lower prices will result in fewer units being supplied. However, there are exceptions to this rule. For example, in 1972, a very simple 10-digit electronic calculator sold for $120. Lower prices di..
U.S. Budget Deficit: Visit the website of the Congressional Budget Office and find the U.S. Federal deficit (surplus) and total debt. As late as 1992, the United States was running budget deficits of nearly $300 billion.
In the long run with free entry and exit, is the price in a market equal to marginal cost, average total cost, both, or neither?
The production process requires labor and capital as inputs. Labor costs $6 per labor hour and capital costs $12 per machine hour.
Situation. You work as part of an analysis team for a consultancy that follows the semiconductor industry. Your boss saw the story from PC World and asked you to provide some analysis for an upcoming industry conference. The PC World article states t..
In April 2013, several employees of Javatech, Inc., a computer hardware developer with 250 employees, started organizing the Javatech Employees Union (JEU). When Javatech refused to voluntarily recognize the union, organizers petitioned the National ..
Suppose that MC=4q, where MC is marginal cost. The perfectly competitive firm maximizes profits by producing 10 units of out output. At what price does it sell these units.
What lessons can we learn from the Chad-Cameroon Oil Pipeline and the Lesotho Highlands Water projects? What corrective measures should be taken?
Why is the unrestricted entry of new firms to all markets necessary to assure the efficient allocation of resources in the long run?
Upon graduation, Steven purchases a new home theatre system for his apartment.To finance the system, he borrows $5,000 from a new credit card at 21% per year compounded monthly. He fully intends to pay off the loan in 1 year while making monthly paym..
Assume an economy where there are two producers: a wheat producer and a bread producer. In a given year, the wheat producer grows 30 million bushels of wheat of which 25 million bushels are sold to the bread producer at $ 3 per bushel, and 5 million ..
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