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You are the manager of a small U. S. firm that sells nails in a competitive U. S. market (the nails you sell are a standardized commodity; stores view your nails as identical to those available from hundreds of other firms). You are concerned about two events you recently learned about through trade publications: (1) the overall market supply of nails will decrease by 2 percent, due to exit by foreign competitors; and (2) due to a growing U. S. economy, the over-all market demand for nails will increase by 2 percent. Your manufacturing process is such that you can benefit from economies of scale for limited quantities, but for a large production average costs increase with the amount of units produced. Based on this information:
a. Should you plan to increase or decrease your production of nails? Explain carefully
b. How would the answer to the previous question change if the supply increases by 2 percent and the demand decreases by 2 percent? Are price and quantity the only decisions you have to make? Explain why this is or is not the case
Which of the following is explained by the price elasticity of demand?
Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply.
q1. illustrate the way in which market forces shape the organizational responses using a range of examplesq2. jerome
Unlike the traditional mortgage amortization schedule, "negative-amortization" mortgages permit the:
a change in populationassume a one-time decrease in population possibly caused by an onset of disease or a sudden
Suppose the economy is in a long-run equilibrium, as shown in the following graph. Now suppose that a stock market crash causes aggregate demand to fall. Use your diagram to show what happens to output and the price level in the short run.
Imagine the economy starts off at the steady state, with m=v=1 and b=1/2; additionally, suppose that the Fed's infaltion target (π-bar) is 1% and that the real federal fund rates (r-bar) is 1%. In period 1, political uncertainty causes a negative AD ..
Develop a strategy for the client to convert passive income into active income deferring immediate U.S. taxation until repatriated home based on your research. Provide support for your recommendation.
question 1 the economic surplus of a particular action is answer the value of the action the cost of the action
How many units of labor should be employed? b. How many units of capital should be employed? c. What would be the total cost of production?
Which of the following is an example of price discrimination?
If you were the Prime Minister of the United Kingdom, in terms of cultural identities. What do citizens of your country (united kingdom) have in common with the migrants? Is there pressure (economic, political, religious) on your to accept migrants i..
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