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Would integration between the following types of firms constitute a horizontal, a vertical, or a conglomerate merger? Explain your answers
a. A food company and a drug company.
b. A milk producer and a cheese producer.
c. A computer chip manufacturer and a silicon producer.
Suppose that there preventative consumer’s preferences change, in that his or her marginal rate of substitution of leisure for consumption in- creases for any quantities of consumption and leisure. Explain what this change in preferences means in mor..
Assume there is a lapse from full employment. Compare the solution offered by the classical economists with that offered by J.M. Keynes. How do these solutions differ from those offered by supply siders and monetarists? You might also mention the vie..
What is the future worth of a series of equal monthly payments of $5,000 if the series extends over a period of six years at 9% interest compounded?
The government can improve economic efficiency by forcing individuals and firms to participate in the market. Explain two situations when government intervention is beneficial.
Joseph Farms, Inc. is a small firm in the agricultural industry. They have asked you to help them complete the limited data they have gathered in an effort to enable effective decision-making. Explain the MC=MR Rule. Describe the market structures to..
Discuss the main points of chapter 11-New Classical Economics. How does New Classical Economics (rational expectations) differ from the original Classical Model? How does New Classical Economics differ from the Keynesian position?
A firm has a production function (products of the whole year) given by q = 500 LK . Wage is $40,000 per year and capital rental rate is $90,000 per year. Find the best way to produce 6000 products in a year. What is the total cost to produce? b. Fin..
Which of the following could explain why a firm is a monopoly?
A supplier contract calls for a key dimension of a part to be between 1.96 and 2.04 centimetres. The supplier has determined that the standard deviation of its process, which is normally distributed, is .04 centimetre.
When tuition (P) is $500 per credit hour, enrolment (Q) is 1000 student. When tuition is 400, Enrolment is 1300 student: Calculate the elasticity and tell whether it is elastic or not. To increase revenue, should tuition be increased or decreased?
Use annual cash flow analysis with an 8-year analysis period and a 5% interest rate to determine which alternative should be selected if their annual operating costs are the same:
Real GDP will increase
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