Name: Professor: Course: Date: Midterm Exam Q1. The correlation between two rival traditions of economic thought by Hunt & Lautzenheister and the great divide in social sciences Smith’s economic theory of economic welfare was, above all else, policy-oriented theory. His principal concern was to ascertain what social and economic forces were most conducive to increasing human welfare, and, by this, to recommend policies that would best promote human happiness. Smith’s definition of economic well-being
Chapter 11 problems 1, 4,5 1. What can you say about economic profit (and the rate of return) in the night-club business? The accounting profit of midnight hour was $100K. Basically, 1M earns 10% return of 100K. The economic profit of Midnight hour would show a 200K decrease on the accounting profits, if the investment was earned at 20%. You have to take into account the opportunity costs. 4. Explain why. Explain
The internet retailer Amazon.com sells many goods and services around the world. Some of their biggest risk factors are that they face intense competition, they incur a great amount of risk through their international expansion and their diverse inventory. They operate in an oligopolistic market, especially in their market for e-readers. Overall in their oligopolistic market over the last three years they have been incurring net losses due to their rapid expansion and their intense competition, even
Although there is no single theory to explain the spatial organisation of production regions in the world economy, we continue to see core-periphery patterns and concentrations of activities in specific areas despite powerful forces of globalisation expanding markets and integrating economies. This has created a huge globally expansive network of information, capital and technical flows across regions facilitated through market liberalization, border reductions between countries and the erosion of
Contemporary Economic Analysis Maria Topping – 09702392 Ishjantsan Gursuren - 18919437 Saranchimeg Purevgerel - 18928352 Azra Valjevac- 18725294 An analysis of John McDuling‘s article in The Australian Financial Review “Locals fight back against Uber in ridesharing battle” 1 EXECUTIVE SUMMARY – Maria mainly responsible & others will support Since its inception seven years ago, Uber Technologies has raised $16 billion in cash and debt. With a valuation of $69 billion, (Newcomer 2016) it is a global
The Airlines Market within the United States of America is very important in the role it plays. This industry thrives on what happens upon the profits, failures, successes and all around survival of certain markets. We find that to often within a market there are many gains and profits because of new industries leaving and new industries entering. An Airline market can consist of many different types of businesses plans. The theory behind how American airlines compete among other airlines is with
The Futures Unlimited Corporation has invented the engine of rocket car. As the inventor, the company currently has a patent on this specific product. Only this firm has the exclusive right to control and distribute the quantity of this certain isotope of plutonium on the market. Therefore it is enjoying a monopoly and will maximize its profit. The profit maximizing behavior of a monopolist is explained below: Profit (π) = Total Revenue (TR) – Total Cost (TC) = P×Q – TC According to the FOC
The Price of Diamonds Is Too High The price of diamonds has been controlled, up until recently, by cartels. Cartels are formed when suppliers of a particular product or service formally agree not to compete with one another. Cartel agreements usually determine the price, output and supply levels as well as where and to whom the product will be distributed to. De Beers is one of the commonly heard names with regard to diamonds. Up until recently De Beers controlled the diamond industry. It both
Antonio, How frustrating it must have been for you and the family to endure a week of property damages and maintenance in your home. This is a fantastic example in which we can learn a little more about how cost-plus pricing works (Thomas & Maurice, 2010). Furthermore, let us consider this discussion can enable you in the future to make better choices. It has been my experience in a few cases that the insurance company will evaluate property damages by the overall cost (Araujo, 2017). But in order
Economic Theories Name Institution Question A. Marshall vs. Thorsten Veblen Views on Behavioral Economics Consumers’ decision to purchase a product in the market is contributed by a variety of reasons. Some customers purchase a commodity because it is satisfying their taste expectations and its price is friendly to their pockets. Other customers decide to buy a product because to is prestigious but not because of needs or satisfaction (Screpanti, and Zamagni, 2005). Marshall Keynes and Thorsten