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A cosmetic firm operating in a monopolistically competitive market environment spends a lot of money in advertisement and ends up with super-normal profit even in long run. Is it possible? Explain your answer in few words.
Also, assume that the “target market” has 1 Household and 1 Graphic Designer (a simple way of representing equal proportions of each type of customer). The marginal cost of production is $0. If Adobe sells only to Graphic Designers, what is the optim..
Which of the subsequent is always true after an economy reaches balanced growth equilibrium.
Olivia knows that Popeye likes spinach as much as $3 in terms of money, he likes tobacco $1 in terms of money, and he dislikes potatoes as much as if he had to pay.
Janice Wallermthe manager of the customer service depart at First Bank of Jefferson County,can hire employees with a high school diploma for $20,000 and employes with a bachelor's degree for $30,0000.
q. suppose that at the equilibrium price and quantity the marginal revenue is -15 and the price elasticity of demand
Let us for now ignore the problem of linear zing around zero-growth-rate, and assume that there is no problem in modelling constant natural growth rate. Let us suppose that monetary shock occurred, due to stochastic or forecast errors or intentional ..
During the financial crisis of 2007-2008, the governor of the Bank of Canada expressed concern that the commercial banks were "hoarding" cash rather than extending a more appropriate volume of loans. Why might the banks do this, and what is the impli..
To earn money for her impending wedding, Elizabeth garage sales her vast wardrobe of conventional dresses, since it has been replaced by the Caribbean's finest collection of pirate chic. Ignoring the original cost of the dresses (Daddy paid that), bu..
Suppose that on January 1, the price of one hundred yen was $0.80 and PPP held. Over the year, the Japanese inflation rate was 5 percent and the U.S. inflation rate was 10 percent.
Discuss two of the following statement. Assume the role of one of the five parties in the GLOBE Project Study case as you form your answers. Respond to at least two of your classmates’ postings.
In 2003, the maximum tax rate on dividends and capital gains is 15%. Andrew, who is in the 35% ordinary income tax bracket, purchased 100,000 shares of stock at $50 per share in January 2003. Dividends of $0.50 per share were paid in April and Septem..
Discuss possible hold-up problems, importance of long term contracts, and possibility of underinvestment in labor that might occur under such compensation schemes.
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