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Indonesia's infrastructure is in bad shape. [According to a recent article in The Economist (May 9th 2015): "companies spend 50% more on logistics than those in Thailand and twice as much as those in Malaysia."] The government of Indonesia cut fuel subsidies in 2014 and allocated half of the consequent savings to develop the country's infrastructure over the coming two decades. Research shows that in the range of infrastructure availability in Indonesia and far beyond that, infrastructure development has significant positive externalities that outweigh diminishing returns to capital.
Think of a business firm you recently visited (such as Walmart, Home Depot, Red Lobster, Barnes & Noble, McDonald’s, etc.). What motivated the producers of all the individual products in the store to make them and offer them for sale?
Elucidate what will be the price of your jersey in Los Angeles and what will be the price in Brooklyn. What will be your total profits.
Assume that macroeconomic forecasters predict that the economy will be expanding in the near future. Explain how might managers use this information.
The market demand functions for corn is Qd = 15 – 2P, and the supply function of corn is Qs = 5P – 2.5. Suppose the government gives corn farmers a $0.70 subsidy per bushel of corn. What will be the effects on aggregate surplus, consumer surplus, and..
llustrate what happens to the money supply. Elucidate how would this change the incentive structure facing depository institutions.
The U.S. cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Illustrate what effect will this have on its optimal price.
during his first year at school, ximin buys eight new college textbooks at a cost of $50 each. Used books cost $30 each. Is ximing better off, the same, or worse off after the price change.
The definition of a price maker is a firm with some power to set the price because the demand curve for its output slopes downward which in effect means those firms with a downward sloping demand curve have some market power.
smaller multiplier means that change in government purchases of goods and services, government transfers, or taxes necessary to close an inflationary or recessionary gap is larger. How can you explain this apparent inconsistency.
What is the output of each firm if they collude to produce the monopoly output? What profit does each firm earn with such collusion.
Elucidate the meaning of value added and its importance in the income approach. Consider the following data for the selling price at each stage in the production of a five-pound bag of flour sold by your local grocer. Calculate the final market va..
this product lobby the government’s lawmakers, in terms of this product being an essential for college students but they are considering halting production due to the lack of profits. The lawmakers agree and now set a price floor at $150. What w..
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