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Theodore Levitt has argued that the world is flat and that due to the advent of modern communications and transportation technologies, consumer tastes and preferences are becoming global. This is creating global markets for standardized consumer products. However, this position is considered extreme by many business people who argue that substantial differences still exist in the world, mainly due to culture. Do you think that the world is truly flat? And what are the implications for strategy and marketing?
If demand of a commodity increases with income,
What is the average product of labor, given that the level of labor equals 5, total output equals 500, and the marginal product of labor equals 25?
For each of the following events, with an AD and AS diagram, explain the short-run and long-run effects on output (or equilibrium GDP) and the price level. Assume that the economy is initially at full employment.
q1. suppose that the government cuts taxes in response to a recessionary gap but because of legislative delays the tax
Calculate the price elasticity demand for bus rides. Next, suppose that the bus schedule is changed so that buses are 10 percent more frequent and that rider-ship subsequently rises to the level that existed before the fare increase. What is the freq..
A special-purpose machine is to be depreciated as a linear function of uses (units-of-production method). It costs $35,000 and is expected to produce 150,000 units and then be sold for $5,000. Up to the end of the third year, it had produced 60,000 u..
From time to time, governments launch some economic policies to stimulate the economy. In recent years the US government has initiated economic stimulus packages to help the sluggish US economy. Among other thing, these packages include a one-time pa..
How would your conclusion change if Mathew purchased a new smart-phone app that could show the status of the highway traffic prior to their drive each morning, thus reducing the probability of them getting into a jam down to only 1day per month.
A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5. Eleven sellers are also willing to sell at the same prices. What is the equi..
Explain how your proposed steps will affect money supply, interest rates, inflation rate, aggregate demand, and output. Provide support for your response.
Describe the two possible effects that an increase in the wage rate can have on labor supply. Which effect do you expect to dominate under normal circumstances?
q.consider an economy with the following aggregate demand ad and short-run aggregate supply sras schedules.
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