Business Growth and Expansion
1. DESCRIBE two ways that businesses in the U.S. can expand and grow.
2. DESCRIBE the two ways a business can merge.
3. EXPLAIN why corporations may become conglomerates.
4. LIST the strengths and weaknesses of multinationals
Characteristics of Free Enterprise
Capitalism
A free enterprise economy has both capitalism and
free markets.
Characteristics of a capitalistic free enterprise economy
include economic freedom, voluntary exchange, private
property rights, the profit motiv
Economics Chapter 2
DIRECTIONS: Download this document into Google docs and complete. When you have
completed the document upload it into Google classroom under that appropriate assignment.s
Every society must answer these three questions:
Economic Goals
*2_REG FEW_COMMENTS WITH ALL POSSIBLE REGRESSION;
*First REG with data sets DAT_1 and NEW1, ALSO REG, CORRELATION PROCEDURE ;
data dat_1; * Data from SNIPE_C2;
input Weight Height Age Ft_Size ;
cards;
6 1 0.5 2
20 2 2.5 2
20 3 3.5 3
26 4 3.5 5
28 5 5 8
6
*ID, age, acid, xray=RESULTS 0 if neg, Size=TUMOR 0 if small, Grade=BIOPSY 0 if less serious,;
* Y=surgery LYMPH NODES INVOLVED;
* TD TD NOTE THE IF STATEMENTS IN PROGRAM TD TD;
data PROSTATE_dat_1;
INPUT ID AGE ACID XRAY SIZE GRADE Y @;
LOG_ACID = LOG(
*MULTIVARIATE ANALYSIS OF VARIANCE AND COVARIANCE: MANOVA and MANCOVA;
*Y1=SALES1, Y2=SALES2, Y3=SALES3, GROUP, PRICE, AD=ADVERTISING, V=STORE VOLUMN;
*1; *Test if there is a trend in Y1, Y2, and Y3. Contrast Y3 with Y1 and Y2;
*MODEL Y1 Y2 Y3 = / NOUNI;
*MULTIVARIATE ANALYSIS OF VARIANCE AND COVARIANCE: MANOVA and MANCOVA;
*Y1=SALES1, Y2=SALES2, Y3=SALES3, GROUP, PRICE, AD=ADVERTISING, V=STORE VOLUMN;
*1; *Test if there is a trend in Y1, Y2, and Y3. Contrast Y3 with Y1 and Y2;
*MODEL Y1 Y2 Y3 = / NOUNI;
WEEK ONE: INTRODUCTION
Setting the Scene
Welcome to the first week of the course! We begin the course revisiting a fundamental tool
from our 100-level economics papers the supply and demand model. Firstly we develop
equilibrium in Chapter 2, and then we c
WEEK NINE: FACTOR MARKETS
Setting the Scene
In this section we consider the impact of market structure on the markets for factors of production. Specifically we examine competitive factor markets, monopoly (output) markets and monopsony markets. In a coun
WEEK EIGHT: GAME THEORY
Setting the Scene
This week we examine the finer workings of game theory specifically we examine static games, dynamic games, and auctions. As we have seen in first-year economics, strategic behaviour is especially important in the
WEEK SEVEN: OLIGOPOLY AND MONOPOLISTIC
COMPETITION
AND THE ETHICS OF MARKET STRUCTURE
Setting the Scene
This section sees us examine the two market structures in between the extremes of perfect
competition and monopoly oligopoly and monopolistic competiti
WEEK SIX: MONOPOLY
Setting the Scene
This week, we look at the single seller market structure of monopoly. We begin this section in Chapter 11 by examining monopoly theory, including profit maximisation, market power, the welfare effects of a monopoly and
WEEK FIVE: GENERAL EQUILIBRIUM AND ECONOMIC
WELFARE
Setting the Scene
This week we examine the topic of General Equilibrium. Analysis of equilibrium in
markets to this point has been confined to individual markets, that is, partial equilibrium
analysis. H
WEEK FOUR: PERFECT COMPETITION
Setting the Scene
This week sees us build on last weeks work to examine the nature of perfect competition.
Chapter 8 involves considering the characteristics of perfectly competitive markets, the
role of profit maximisation
WEEK THREE: THEORY OF THE FIRM
Setting the Scene
This week we examine the theory of the firm. We begin in Chapter 6 with firms and
production. We look specifically at the production function and how firms combine
inputs to produce output in both the short
WEEK TWO: CONSUMER THEORY
AND THE ETHICS OF UTILITARIANISM
Setting the Scene
Having reviewed supply and demand and related concepts, we now revisit consumer
theory. Where we covered indifference curves in the first year, the discussion was largely
focused
Tutorial One
Chp 2:
30. Q Q1 Q2 (120 p) (60 1 2 p) 180 1.5 p.
31. We have:
Q1 120 p,
0,
Q2 120 2p,
0,
for
for
for
for
p 120
p 120
p 60
p 60.
Thus, the demand function is:
Q Q1 Q2 240 3p, for p 60
120 p,
for 60 p 120
0,
for p 120.
For graphing purposes
Tutorial 9
Chp 15
26. The marginal product of labor is 0.2L0.8K 0.3. Suppose the marginal revenue is MR, then the
marginal revenue product of labor is
MRPL MR 0.2L0.8K 0.3.
27. The competitive firms marginal revenue of labor is MRPL = 2pK.
28. Audio-Power
Tutorial 8 Chp 14 24. The table below illustrates this game. "S" denotes taking steroids and "NS" denotes not taking steroids. If they both take steroids they tie and the payoff for each is 10 6 4. If one takes steroids and one does not, the person who ha
Tutorial 7.
Chp. 13
26. To answer these questions, we use Appendixes 13A (Cournot) and 13B (Stackelberg).
a. Using Equation 13A.8, the Cournot equilibrium quantity for each of the duopoly firms is q
(a m)/(3b) (150 60)/3 30. As a result, the Cournot pric
Tutorial 6
Chp 11: 25. We know MR 100 2Q and MC 5. Set MC MR and solve: 5 100 2Q Q* 47.5 p* 52.5 profit 2493.75 247.50 $2246.25. If the cost function changes to C 100 5Q, the quantity and price will not change, however the profit will be 2493.75 337.50 $2
Chp8 30. See Figure 8.16. Assume each firm uses the same size plant in the short and the long run. Before the change in demand, the market will have reached a long-run equilibrium, where each firm produces Q1 at the minimum average cost, the market produc
Chp 6-
*26. The production function is q L0.75 K0.25.
a. As a result, the average product of labor, holding capital fixed at K , is APL q/L L0.25
K 0.25 (K /L)0.25 .
b. The marginal product of labor is MPL dq /dL 3 (K /L )0.25 .
4
27. a. No diminishing ma
CHP 4
37. She will prefer the bundle with two anchovies and two boxes of biscuits because if MRS 1 at
this point, and the indifference curve is convex, she will be unwilling to trade down to any lower
quantity of biscuits at a one-for-one ratio. At the po
Suggested Answers for Short Answer Questions in Quiz 3
Question 12 Suppose that market demand can be represented as = 100 - 2. There are 10 identical firms producing an undifferentiated product, each with the total cost function: = 50 + 2 . Compare the co
Suggested Answers for Short Answer Questions in the Second Quiz
8. Suppose market demand is = - . If all firms have = - + , how many identical firms will there be when this industry is in long-run equilibrium? In the long-run competitive equilibrium, all
178.200 Intermediate Macroeconomics
Tutorial (12)
Economic Growth
1
Short Answer Questions from Textbook 1. Question 4 of Questions for Review on P219. In the Solow model, how does the rate of population growth affect the steady-state level of income? How