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1) Is an MNC generally faced with incurring double taxation on its profits in the subsidiary's country? Why or why not?
2) "The reason the government has to step in and 'internalize' benefit and cost externalities is because people are basically selfish." Do you agree or disagree and why?
The Coca-Cola Company has 40% of the cola market. Determine the probability that a sample proportion
There are problems faced by regulators in setting price for a natural monopoly. There are different regulatory options for setting prices: price equal marginal cost; price equal average cost. compare and contrast them. Identify the potential problems..
"Our marginal revenue is less than our marginal cost at the current production level." This statement indicates that the firm:
An island economy produces only two goods, apples and bananas. There are five people (A,B, C, D, and E) living on the island with these preferences: For each of these five individuals, construct several representative indifference curves with apples ..
Suppose the monopolistically competitive barber shop industry in a community is in long-run equilibrium, and that the typical price is $20 per haircut. Moreover, the population is rising. Illustrate the short-run effects of a change on the price and ..
The Fed wants to increase the money supply (which is currently 4,000) by 200. The money multiplier is 3. For each 1 percentage point the discount rate falls, banks borrow an additional 20. Explain how the Fed can achieve its goals using the following..
"The only way to succeed in a market with homogeneous products is to produce more efficiently than most other firms." Comment. Does this imply that efficiency is less important in oligopoly and monopoly markets?
A water utility for a growing city is considering expanding their capacity by investing in a larger system of wells. Their long-run marginal cost of water provision is characterized by the function MC(q) = 5 + (2/3)(q) (q is in thousands of gallons)...
Do most states recognize an S Election for state income tax purposes? What methods do states recognizing S status utilize to ensure compliance by nonresident shareholders?
A few industries in the United States have convinced the political system to allow large firms to work together legally. In particular collegigate and professional sports teams have been given legal authority to cooperate to limit competition. Does t..
Imagine that you are the owner of a day-care center and that parents consistently pick their children up late. Your clearly stated policy is that children are supposed to be picked up by 5:30 pm. This makes pick-up time uncomfortable for all involved..
Explain the difference between accounting profit and economic profit. Which should business owners be more concerned with and why? Provide an example that would illustrate how accounting profit and economic profit differ.
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