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1. Why is a proprietary good necessary for a firm to choose to become a multinational?
2. In Ramondo, Rappoport, and Ruhl (2011), "Horizontal vs. Vertical FDI: Revisiting Evidence from U.S. Multinationals", what are the configuration possibilities for a parent-affiliate pair?
Entrepreneur: The entrepreneur or enterprise is a special factor of production that is in charge of the organization of the other three factors of production (land, labour and
what is the theory of supply
Elasticity of Market Supply • Perfectly inelastic short run supply arises when industry's plant and equipment are so fully utilized that new plants should be built to ac
Negative profit FC + VC > R(q) MR > MC Indicates higher profit at the higher output - Question: Why is profit negative when the output is zero? - Outp
Problem: i) Differentiate between economic development and economic growth. ii) Describe carefully how, using the expenditure approach, national income is calculated. ii
Explain the difference between elastic and fixed supply
assumptions
use of diagram how the price mechanism operates to allocate scarce resources. use examples to illustrate the answer.
discus how opportunity cost influence supplier''s decision to supply labour
do you think that dimnishing returns to a factor are consistent with increasing returns to scale? explain with suitable diagram and reasoning.
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