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Some companies that outsourcing call centers during the 1990s have returned these centers to north America over the past decade. who has gained and who has lost as a result of the return of the call centers to this continent? Explain.
Consider a perfectly competitive firm that faces the following market demand and market supply curves: Find the profit maximizing output for this firm. What are profits? Suppose demand shifts down and the new market price is $1.50. What is the profit..
Subprime lending is thought to be a contributing factor to the recent housing bubble. Which of the following is an example of subprime lending?
Consider the market for two goods that are substitutes, such as pens and pencils. if a technological breakthrough reduced the cost of producing pens. A/ what would happen the supply of pen? B/ what would happen on the price of pens and the quantity e..
The Duckett Group is trying to determine its optimal average cash balance. The firm has determined that it will need $8,100,000 net new cash during the coming year. According to the Baumol model, what should be Duckett’s average cash balance?
Suppose that doctors' visits cost $20, and the typical consumer has an income of $100. Consumers spend all of their incomes on doctors' visits and a "composite good" that costs $1 per unit. Draw the new budget constraint the consumer faces under plan..
Walt considers x and y to be perfect substitutes. They originally cost $10 and $9 respectively. His income is $720. One day the price of x drops to $8.
describe briefly how consumers and incumbent firms are influenced by these externalities.
During the recent 2007-2009 economic contraction, nominal interest rates fell to nearly 0%while the rate of inflation remained positive. What happened to the real interest rate? How would this movement in the real interest rate affect decisions to sa..
What is the difference between the rate of return between dollar and euro deposits? Is the prevailing exchange rate at an equilibrium level?
Since your safety officer is insisting that each of your drivers must maintain an average speed of 55mph, what would be the vehicle operating cost of your company for each semi-truck in cent per mile?
Consider now an economy where you need to search for a job. Let b be the function of people that do not have a job and are searching for one. Here active population and working age population do not coincide. Write the equation describe the dynamics ..
The business cycle is measured in terms of changes in real Gross Domestic Product and is associated with changes in the unemployment rate. The financial performance of most industries is affected by the business cycle, although not equally. Consider ..
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