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TV commercials are swamped with prescription drugs for anxiety, depression, impotence, and heartburn. Oftentimes, a drug company would try to get consumers to ask their doctors to switch to their products. This has something to do with the patent. The patent on the old drug runs out that year, soon the price will go down as other companies can produce the same drug. The new ads that ask consumers to switch is a way of building loyalty to a new, monopolized brand at a time when the old monopoly will soon disappear. Now: Microsoft introduces new operating systems every three or four years. How is this behavior similar to or different from the drugs case? State two similarities and two differences.
What are the costs and benefits of outsourcing? Can outsourcing be used to avoid tariffs and other trade restrictions? Provide 2 real-world examples of outsourcing by a firm(s) which competes globally. Need citations
Consider a perfectly competitive market where demand is given by P=84.20-2.15Q and supply is given by P=12.78+1.20Q. Calculate the equilibrium quantity and price.
Discuss using an example what are public goods and why does it lead to a free rider problem. Why is fishing in the ocean, where there are no well-defined property rights, a concern regarding our ability to ensure sustainable use of our fishing stock?..
Illustrate how each of the following events would shift the AS schedule and potential RGDP, thereby altering equilibrium prices and output levels in the economy. Use an aggregate supply-aggregate demand diagram in your explanation and assume that the..
In recent yrs, persons also state governments have sued various tobacco companies to compensate for illness also injury allegedly cause d by cigarette smoking.
Identify and describe other supply chain management applications that would be especially helpful to Office Depot.
An apartment owner has contracted for lawn mowing services for a number of apartment complexes he owns.
Lynn borrows $5,000 at 15 percent per year compounded monthly. She wishes to repay the loan with 12 end-of-month payments. She wishes to make her first payment 1 month after receiving the $5,000. She also wishes that, after the first payment, the siz..
California’s Proposition 13, enacted in 1978, limits the property tax on real estate to one percent of the market value when purchased, and a maximum annual increase in the tax amount of two percent. According to the Georgists, Prop 13 did not constr..
Utility is given by the function U(x,y) = (x + 2)^0.6y^0.4. Income is I and the prices of x and y are respectively Px and Py. Solve for the optimal quantities of x and y. Are corner solutions possible?
In competitive markets, individual businesses operate as small sellers in the market. Suppose eBay e-books $4 per unit in a highly competitive market.
Construct the aggregate demand and aggregate supply model of the macro economy and use it to illustrate macroeconomic problems and potential monetary
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