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Imagine that you are a manager of a chemical company. An accident has occurred in which chemicals leaked into the ground water nearby. The community is unaware of the accident. Compare the primary costs involved in cleaning up the water immediately (and thus confessing) versus hiding your culpability now and possibly paying more in the future. Predict the impact on profitability in both situations.
At the same time dozens of low price producers started growing plants for sale. The net result was a decline in the average price of houseplants.
Consider a Stackelberg game with three firms (1, 2 and 3) where firm 1 moves first and firm 3 moves last. What quantities will they choose if they have zero costs and the demand curve is p = 100 - q
Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees In many smaller cities all McDonald's outlets are owned by the same franchisee. Why is (or isn't) this fac..
In order to reduce farm output, raise farm prices, and thus raise farm incomes (revenues), the government pays farmers to set aside a portion of their land from production. Using a graph, explain in terms of the elasticity of demand for farm produ..
Write the equation for the new AE Planned function - What is the value of the new equilibrium level of income?
The discussion centers on how person or consumers would react during a period when a country's GDP growth rates.
Fierce storms in October 2004 caused Tomato Fest Organic Heirlooms Farm to end its tomato harvest two weeks early. According to Gary Ibsen, a partner in this small business (Carolyn said, "Tomatoes in Trouble," San Francisco Chronicle, October 29,..
What is the present value of this sum at an interest rate of8% also what happens to the present value if the rate falls to5%
Does Consumer Bank face interest rate risk? That is, if market interest rates increase or decrease 1 percent, what happens to the value of the equity? How can a decrease in interest rates create interest rate risk?
Legislative bodies impose price controls to help a part of the economy; who benefits and who is harmed by price ceilings and price floors?
Suppose two methods for achieving less water use in a community. The 1st method includes trying to convince people to apply water conservation measures and to use less water at current prices.
Discuss and explain perfect competition and long-run equilibrium. Provide detailed descriptions, definitions and concrete examples of your findings.
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