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Many industries are often plagued by overcapacity: Firms simultaneously invest in capacity expansion, so that total capacity far exceeds demand. This happens not only in industries in which demand is highly vola- tile and unpredictable, but also in industries in which demand is fairly stable. What factors lead to overca- pacity? Explain each briefly.
Demand for a managerial economics text is given by Q=20,000-300P. The book is initially priced at $30.00. Write the demand equation for which the price elasticity of demand is zero for all prices.
Other things equal, increasing home prices tend to:
Some firms with monopoly power are more focused on market share, size and influence in the economy. This is particularly true if there is a tendency for ownership (stockholders) and control (managers) to be separated. These firms sometimes are willin..
How does the charging the monoply a specific tax per unit affect the monopoly optmum
When the firm increases labor input, which of the following is correct about the relationship between marginal product of labor and marginal cost? Answer If marginal product is increasing, marginal cost will be decreasing. Marginal cost is equal t..
Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity. Relate at least one current event to the activities.
There is some evidence that people have become more sensitive to air pollution. In other words, people are willing to pay more for clean air. If this is true, what influence will it have on the location decision of firms?
Explore whether or not funding from international lending institutions like the World Bank and the IMF are helping or hindering the social, economic, or political development of the country that you have selected. Support your response with examples.
Evaluate the overall explanatory power of the regression model. Use a 0 . 05 level of significance. State all your hypotheses and explain your results. Do not use rules of thumb.
A recent study by Web Mystery Shoppers International indicates that holiday gift cards are becoming increasingly popular at online retailers. Do you think online gift cards are merely a fad?
My brother has a house worth $400,000 and he has no mortgage as it is paid off! His utility bills and insurance and maintenance cost him about $500 per month and property taxes and all other costs about another $500 per month.
Does this reflect an absolute or a comparative advantage - Name 4 issues that you will encounter as you become a multinational corporation.
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