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The small city of Le Locle has been served by the same local newspaper for the last 30 years called the Le Locle Tribune. The Tribune is written in a fairly conservative style yet, the demographic of the city is comprised of avid readers of a broad spectrum of political dispositions. A new newspaper firm plans on entering the market. This new paper will call itself the Le Locle Examiner.
a. What would you expect would be the degree of price competition between the two firms?
b. Along the political spectrum of liberal to conservative, in what style might Le Locle Examiner be expected to be written? Explain your answer.
c. Considering political disposition as an axis of product differentiation, does vertical or horizontal differentiation best categorize it?
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PbP Company have pay $10,000 to disassemble and ship the furnace to the new owner. What is the net cash flow after tax as it will result from selling this furnace in the year 2012.
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wo companies A also B are duopolists who produce identical products. Determine the long run equilibrium output also selling price for each firm.
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Find Equilibrium GDP (Y). If potential GDP is 1950, is the economy in a recessionary or inflationary gap. Suppose that the MPC, falls to 0.75, so C = 0.85DI. Find Equilibrium GDP.
Show how the answer depends on the shape as well as location of the supply as well as demand curves.
If the average worker produces $80,000 of GDP, explain by how much will GDP increase if there are 150 million labor-force participants and the unemployment rate drops from 5.2 to 4.5 percent.
Two Processes are under consideration for a certain production. Process A needs acquisition of a new machine which is estimated
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