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A firm has $3.5 millionin sales, a Lerner index of 0.67, and a marginal cost of $50, and competesagainst 800 other firms in its relevant market.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
a. What price does thisfirm charge its customers? SHOW all work
b. By what factor does this firm mark up its price over marginalcost? SHOW all work
c. Do you think this firm enjoys much market power? Explain
Pete's report says that the demand curve will be then OmiCon will build a shopping center that optimally sized for that demand curve. But in the second scenario, if Pete's report says the demand curve will be there is a 20% chance that demand curve w..
Why does the government intervene in the economy? Should they and what would the impact be if they did not?
Explain how the NBC Learn clip concerning optimism and certainty affect aggregate demand and hence, consumer spending. Make sure you say how the aggregate demand curve would shift for both optimism and pessimism in the economy.
Provide a definition of Foreign Direct investment (FDI). Provide an example. Why do you think Starbucks originally chose to expand internationally through licensing its format to foreign operators? Define "offshore production." Why do you think it is..
q.part 1in 2011 company xyz had sales of 345620million net working profit subsequent to taxes of 10250 million and
What are the factors that would influence the Federal Reserve in adjusting the discount rate? How does the discount rate affect the decisions of banks in setting their specific interest rates? How does monetary policy aim to avoid inflation?
Explain Cournot competition. Illustrate and explain strategic substition. Illusrate and discuss the operation of the Cournot model as it relates to the empirical evidence regarding 1) price markups over marginal cost and the number of competitors and..
Does financial market contagion explain the spread of the East Asian crisis during 1997–1998? Were countries in Asia innocent victims of irrational capital markets? How much blame should they take for the Asian crisis? Was the IMF's response to the c..
Consider a three-year $2,000 par value coupon bond that has a present value of $2,140. If the annual rate of discount is 7 percent, and the payment made at the end of each year is $140, the principal amount to be repaid at the end of three years is
A laboratory centrifuge costs $80,660 and has a $5530 salvage value with an 8-year recovery period. The estimated annual operating cost is $7000 per year. Use the double declining balance method with switch over to straight line to determinate the bo..
The Venezuelan bolivar has been steadily depreciating against the US dollar, but the government wishes to stop the depreciation. What must the Banco Central de Venezuela do to stabilize the exchange rate? Is there a limit to how much it can intervene..
Consider a cruise liner provisioning a certain consumable item for her next trip. In the first stage, the cruise liner procures from the home port region right before the start of the trip. The unit cost for the item at home port is c1. Compute the o..
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