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Identify one product for which consumers normally have elastic demand and one product for which consumers normally have inelastic demand. (Use examples that are not found in the textbook.) Do either of the products that you identified have any close substitutes? Explain your answer.
Are the salaries received by professional sports athletes outrageously high? Should the CEO's of financial institutions receive more monetary compensations than entertainers, since their jobs contribute more to the development of the country? What ar..
Countries with higher personal saving rates tend also to have higher rates of business investment and capital accumulation. Explain why this fact does not provide a justification based on social efficiency for policies that increase U.S. personal sav..
Why might governments nationalize firms and do they have added advantage or unfair one over the private owned firms? What are the different forms of terrorism and how can international managers meet this challenge?
Suppose production function for noodle soup at Slurping Turtle is Q =4k^1/2 L^1/2. They currently own 4 units of capital and are not able to change this during the short run. The rental rate of capital is $10 and the wage rate is $20. Suppose Slurpin..
Write a first draft. Describe the topic and your response to someone else, and inquire about whether it makes sense and flows well. Edit your first draft, taking into account your reviewer's comments. Edit your second draft for grammatical errors,..
Susan received news from her boss that she has been given a raise in incomes from $20/ hour to $25/ hour for her 40 hour week job, effective immediately. Over the next week her purchase of wine increased from 4 bottles to 6 bottles. Compute her incom..
Studies indicate that the changes in fiscal and monetary policy affect the 3 economic agents in the economy (households, firms and government). How do the changes in monetary and fiscal policy instruments affect you personally or work wise?
Why does America have a two-party system?
You are the manager of the surgery department at a hospital which serves mostly Medicare patients. The hospital performs 1,000 surgical operations per year using the traditional method. Compute the total revenue, the total cost, and the profit at the..
Consider the example of moral hazard problem when a firm issues bonds/takes loans. We have shown that if the a sufficiently large fraction of the project is financed by the firm’s internal funds (in our example, 25%), the firm will choose Project S (..
Patient volumes for a radiology clinic are observed to have the following time-series data: Monday = 25, Tuesday = 28, Wednesday = 32, Thursday =26, and Friday= 30. Using a 5-day moving average and ignoring weekend volumes, what is the projection for..
Suppose Apple has a monopoly on iPhones and Verizon has a monopoly on data plans. An iPhone without a data plan is worthless, and a data plan without an iPhone is worthless. Thus there is no such thing as a demand for iPhones or a demand for data pla..
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