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Rasna Ltd., a company that is a leader in the Asian Indian concentrated soft drink market, recently announced plans to boost its exports by 30 percent and plans to enter the US market. How will this information likely affect the situation facing similar firms in the US? Why would managers in the US want to reason through the effect of this company entering its market?
Assume that, in autarky (pre - trade), an economy has 150 workers and the MPLC is two cars and the MPLB is five boats. Find the autarky (pre – trade) relative price of cars in this economy. Suppose that: In Malaysia the unit labor requirement to prod..
A contractor must choose between buying or renting a crane for the duration of a 5 year construction project. The contractor uses an MARR of 8%. At the end of the project, the crane can be sold for 21% of its initial cost. The cost to operate and mai..
Joint Distribution of Weather Conditions and Commuting Times
A good without any close substitutes is likely to have relatively _______? demand, because consumers cannot easily switch to a substitute good if the price of the good rises. Price elasticity for a good depends on the share of a consumer's budget sp..
An increase in the assets of Federal Reserve banks will, An increase in excess reserves will cause, Consumption spending should increase if.
A corporation just issued a 10 year, zero coupon bonds having a YTM of 10%. Under current tax law, how much interest can the corporation deduct in the first year?
A company with 100 employees decides to offer its employees medical insurance administered by a major health company, but funded totally by the employer—i.e., it self-insurance. The CEO is furious with his HR director who told him that, given their h..
Does Zara experience disadvantages from its "fast-fashion" allocation system. Are these disadvantages offset by the advantages.
Using an instance in which you bought or sold something in the last week describe the terms of an express contract that might arise between the supplier and the seller. When would an implied-in-fact contract arise between the seller and a buyer?
In the final round of a TV game show, contestants have a chance to increase their current winnings of $1 million to $2 million. If they are wrong, their prize is decreased to $500,000. A contestant thinks his guess will be right 50% of the time. Shou..
Describe the Lucas critique. Why might the level of government debt affect the government's incentives regarding money creation?
Suppose there are 100 firms in a perfectly competitive industry. Each firm has a U-shaped, long-run average cost curve that reaches a minimum of $10 at an output level of 8 units. Marginal costs are given by MC(q)= q+2 and market demand is given by Q..
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