Assignment 1: Principles of Economics A March 2010 report on alcohol abuse identified American adults make up over 30 percent of alcohol abusers or are suffering from alcoholism (Roberts‚ 2010). The report interviewed 43‚000 adults in the 18 and older category and brought to light the dependency on alcohol consumption by adults as well as its far-reaching implications of costs associated with this addiction. An economist would approach the problem of alcohol abuse by making the assumption that
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Economic Analysis for Managers CHAPTER 11 (TECHNICAL QUESTIONS) 1. Do government statistics calculate GDP by simply adding up the total sales of all business firms in one year? Explain. GDP is the market value of all good and services produced in the United States in one year. It includes only final goods and services‚ so the sales of any firms producing intermediate goods are not included. GDP is usually calculated by adding up spending on consumption‚ investment‚ government‚ and net
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war for market share goes on yet Samsung is able to maintain a high market share in TVs and smartphones. It is the innovative ideology of Samsung that has driven it to the top. Smart Camera & Smart TV as a monopoly What is Monopoly? In Economic terms ‘Mono’ means ‘one’ and ‘Poly’ means ‘Seller’. So basically it occurs when there in only one seller of a particular commodity in a market. There is no close substitute for the product in the market so the seller has complete power to set its
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garments‚ terry towel‚ wet grinder‚ engineering‚ machine tools‚ handtools‚ foundry‚ brass parts‚ rubber and pharmaceuticals cluster. There are more than 6500 industrial‚ artisan and micro enterprise clusters2. These clusters represent the socio economic heritage of India‚ where some towns or villages are known for a specific product for decades and centuries. It is estimated that these clusters contribute 60% of the manufactured exports from India. The clusters in India are estimated to have a significantly
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PROBLEM SET # 3 JUDO ECONOMICS The Problem is premised on the following phased structure; | Decision Maker | Decisions To Be Made | Stage 1 | Entrant | Whether to enter or opt out | Stage 2 | Entrant | Set up the price(Pe) and the number of target customers(T) | Stage 3 | Incumbent | Whether to fight or accommodate; 1) Price war 2) Set up the price for remaining customers (100-T) | Stage 4 | Buyer | Consumers buy from whoever offers them the highest surplus. There is no cost to capacity
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1.Consider the following entry game. Here‚ firm B is an existing firm in the market‚ and firm A is a potential entrant. Firm A must decide whether to enter the market (play "enter") or stay out of the market (play "not enter"). If firm A decides to enter the market‚ firm B must decide whether to engage in a price war (play "hard")‚ or not (play "soft"). By playing "hard"‚ firm B ensures that firm A makes a loss of $1 million‚ but firm B only makes $1 million in profits. On the other hand‚ if
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Economics 515 Midterm 1 1. Economic growth vs. economic development‚ define extensive growth & intensive growth Economic growth is the sustained increase in the output of goods/services of a society. Economic development is economic growth plus changes in technical and institutional arrangements by with output are produced. Extensive growth- increase in output due to increase in inputs (labor force grows‚ land stock increases) Intensive growth- increase in output per unit of input –
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GEOG 4077 – Mid-term Review >Economics is disembodied from regions & cities and Economic Geography is here to fill that space. >German Geography is very field oriented. >Human Geography * Friedrich Ratzel: “Anthropogeographica” (1882) A branch of anthropology dealing with the geographical distribution of humankind and the relationship between human beings and their environment. Cultural Historical economic paradigm to work with. He first coined the term‚ lebensraum (which
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designate the two major economic spheres in the world economy: a wealthy North made up of Economically Developed Countries‚ (EDCs)‚ and a less wealthy South composed of Less Developed Countries (LDCs). The two geographical designations result from the fact that most EDCs lie to the north i.e. North America and Europe‚ while most LDCs are further to the south‚ in Africa‚ Asia‚ and central and South America. The North/South divide is not absolute in a geographical sense. The economic factor is the most
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ECM002 Business Economics Instructions: Please answer four out of the following six following questions: Question 1. Suppose Cola- Sol and Miniranda are the only two companies producing a particular type of cola drink in the soft drink industry. Both companies are considering launching a new drink with a light lemon twist. They can launch their products either at a low price or at a high price. The expected net payoffs are the following: If both companies choose a high price strategy‚ Cola-
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