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Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm.
Describe the business and its likely main competitors.
How would you structure your advertising and customer service to differentiate your product/service?
How easy would it be for new competitors to enter your market and erode your customer base or selling price?
What would be your prognosis for the long term profitability of such a business?
What could you do to protect that long term profit stream?
Substitution and income effects of a change in price of a good may be used to explain the:
A college graduate with a B.S. in Mechanical Engineering expects to earn, on average, $20,000 per year more than an engineer without a B.S. degree. If the graduate expects to work for 35 years, and the cost of the college education is $100,000, what ..
Why might these firms agree to form a cartel. If such a cartel is formed, use the prisoner's dilemma to explain why it may or may not survive.
A goal of the consumer is to maximize utility. On separate diagrams, plot the income-consumption curves for X1 and X2. Explain why each has the particular shape drawn.
If expected inflation is constant and the nominal interest rate increases, how does the real interest rate change?
In an interview with Daron Acemoglu, he says "the hot money which was floating through Turkey has stopped after FED's declaration that we are going to give much more attention on monetary policy". Basically I know some fundamental things like monetar..
Suppose that $2700 is set aside each year and invested in a savings account that pays 10% intrest per year, compounded continuously. Determine the accumulated savings in this account at the end of year 24
Elucidate how much does the gardener receive. How much does the customer pay. How much does the government receive as tax revenue.
Analyze the reasons for and against the merger and assess the actual performance of the consolidated company against the pre-merger expectations.
In December 1992, the government began requiring that food contain labels with nutritional information. The information had to be verified by independent laboratories. The price of verification was $20,000 per food item. What impact would this have o..
Illustrate what are the main characteristics of a perfectly competitive market that cause buyers and sellers to be price takers.
Several big companies offer employees time off during the workday to attend seminars on how to improve their health. Some even give bonuses to people who show that they are adopting healthy lifestyles through,
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