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10. "IBM is investing $3 billion in a private-public partnership with New York State, GlobalFoundries, Samsung and equipment vendors," to create ultradense computer chips (John Markoff, New York Times, July 9, 2015). TOTALLY MADE-UP SCENARIO: Suppose that during their affiliation, Samsung has paid IBM $200 million for creating a special version of these ultradense chips for Android products. Suppose further that the contract included certain requirements for size, speed and other qualities. Then suppose that after beta testing these chips, Samsung claimed that IBM's efforts failed to live up to their contractual agreements. (2 points each: 1 for explaining the concept, and 1 for applying it correctly) a. Was either party earning rent? What assumptions do you have to make to assert this? b. Was either party earning quasi-rent? What assumptions do you have to make to assert this? c. Could IBM have held up Samsung? And/or could Samsung have held up IBM? Explain
assume you are the plant manager for bravo pork rinds which produces pork products in a market that approximates
where P is dollar price, Q is quantity in units and I is income expressed in thousands of dollars. Let the price of cookies and apples remain constant at $10 per unit for both goods.
draw the relevant diagrams for a typical farm and for the market as a whole when the market for wheat is in long run
How does the existence of money reduce the costs of making transactions ,relative to a society based entirely on barter. English is becoming the usual language for international transactions, even if the language of neither country is English.How ..
the xerxes company is composed of a marketing division and a production division. the marketing division packages and
Find the best response function for each firm and solve for the Nash equilibrium prices for each firm
assume that the low-calorie frozen microwavable food company from assignments 1 and 2 wants to expand and has to make
A group of five students has decided to form a company to publish a guide to eating establishments located in the vicinity of all major college and university campuses in Texas. In planning for an initial publication of 6,000 copies, they estimate..
1 an example of a negative externality is thea. decrease in your real income that results when photographic equipment
You woke up in the morning and found a one once gold nugget under your pillow. Because you did not incur any sacrifice to obtain the gold, it seems free. Later you find out it is worth $400. If you continue to hold to the gold, rather than sell it is..
Calculate output, marginal cost, averagecost, price and profit at the average cost-minimizing activity level and calculate these values at the profit-maximizing activity level.
If markets are perfectly competitive and production of a good results in water pollution, the imposition of a tax on the good will:
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