Reasons for Vertical Integration of FirmsThe Extent To Which Firms Vertically Integrate Is Determined By The Trade-Off Between Technical And Agency Efficiency”. Evaluate This Statement With Reference To The Relevant Theory And Empirical Examples. Discuss How The Principal- Agent Relation Is Linked To The Issue Of Moral Hazard? Using a Suitable Empirical Context, Assess The Severity Of The Problem And Briefly Suggest Possible Solutions T...
Factors affecting demand curve for ice cream and potato chips1.Identify a good you commonly use or would like to use. Explain at least three factors that would result in a shift in the demand curve for that good and three factors that would result in a shift in the supply curve for that good. 2. Describe the effect on equilibrium price and quantity of each factor. 3. Finally, explain how the shifts in demand and supply are different fr...
Assignment Your final assignment takes the form of an individual report and it is divided into two parts: A. Please briefly answer the theoretical questions below: a. Explain the different types of marketstructures using both graphs and verbal explanation. Provide a specific real-life example of each market. b. Why monopolies arise? Explain and mention a real monopoly! c. Explain briefly how the price floor works in a market if the governm...
Problem 1Problem 1 Suppose you have 8 used Varian’s Intermediate Micro textbooks, which you want to get rid of. There are 8 potential buyers who are willing to buy your used textbooks. You know how much each potential buyer is willing to pay for a single book. Let’s call this amount the reservation price. Reservation prices of potential buyers are in the table. Buyer A B C D E F G H...
The Impact of Tariffs on the US NIIRU1. a. What will happen to the US NIIRU (aka NAIRU or un) if President Trump, by putting “America First,” imposes tariffs on many goods from many countries? Be sure to explain what this “shock” is; use the un equation to check. b. Use the extended IS-LM model linked to the PC graph to examine the SR and MR effects of this “deglobalization” shock. Assume the US start...
You will read the article Zombie Economics by Patrick McCormick and answer the following questions. 1. What is the purpose of the article?Answer: 2. How is the ‘zombie metaphor’ used to relate to economics?3. Why, in your opinion, do you think that zombies are a popular metaphor?4. In the last paragraph of the article, the author offers a solution to the pr...
Question 1 Suppose an hour’s labour produces 10 kg of rice and 5 meter of cloth in India, and 5 kg and 2 meter in Thailand. Using opportunity costs, explain which country will export cloth and which will export rice in trade? (10 marks) Question 2 Suppose Mike and Johnson produce two products-hamburgers and T-shirts. Mike produces 10 hamburgers or 3 T-shirts a day and Johnson produces 7 hamburgers or 4 T-shirts. Assuming they can devote...