1-Create a Venn diagram, where you compare and contrast at least 3 characteristics of oligopolies and monopolies.

2- Explain two benefits that could arise with the existence of specialized brands.

3- If a group of sellers can form a poster, what quantity and price would you be trying to establish?

4- why are antitrust laws so controversial?

Consider the following three mutually exclusive investment project alternatives (A, B, C). Use the annual worth analysis (AW) to determine the best investment alternative assuming MARR=15%.

Project name:                                        A                    B                    C

Cash Flow (Year 0):                                    -200,000        -300,000        -400,000

Cash Flow (Year 1-N)                     +150,000       +180,000       +150,000

Salvage value at year N:                +30,000         +50,000          +60,000

Project Life (N):                                    2 years         3 years          6 years

Answer the following questions: a) Draw a production possibilities curve showing the number of apples and pears that one person can pick in a given time period.

(i) Show efficient, inefficient, and impossible levels of output.

(ii) Why does the curve slope downwards?

(iii) What does the model tell us about the principle of opportunity cost?

(iv) Explain why a combination of apples and pears (i.e. a level of output at a middle point along the curve) gives you more fruit that if you had picked only apples.

(v) Why is the curve not a straight line? b) Ada, Brenda and Cathy are good friends since high school. All of them have just completed a degree in Business Administration. Brenda is an average student in both management and marketing. Ada is a top student in marketing and is only okay in management. However, Ada is still better than Brenda in both areas. Cathy is good in management but very poor in marketing.

You’ve been asked to calculate the equivalent annual benefit (EUAB) of a new machine.The initial cost is $100,000; use full life is 10 years; and salvage value is $10,000. The new machine is expected to reduce operating costs by $24,000 per year. Assume MARR of 10% and 40% tax bracket.You a real ways thorough and you plan make three calculations. PartA:NPV that does NOT include tax or depreciation.PartB:NPV includes the 40% tax,but NOT any depreciation. PartC:NPV that includes 40% tax after straight-line depreciation.

Why are stolen goods that are sold to a bona fide purchaser returned to the original owner, but goods that are obtained by fraud that are sold to bona fide purchasers stay with the purchasers? Explain and justify the difference.

Two manufacturers, Take-A-Paws (Paws) and Raise-The-Woof (Woof), each make dog collars and dog leashes, and they each operate 10 hours a day. Paws has 10 workers and Woof has 20 workers. In a given hour, Paws can produce 3 collars or 4 leashes, whereas Woof can produce 7 collars or 5 leashes. Part 1. Indicate whether the following statements are true (T) or false (F) and explain why: A. Since Woof has the absolute advantage in collars, Woof should produce only collars. B. Paws has the absolute advantage in leashes Part 2. The two companies decide to join each other in production and are open to trading with the rest of the world. The world price of a leash in terms of collars is x. Suppose that Paws produces only leashes: check all of the price ranges where all x within that range are feasible (in terms of collars per leash) and explain why:

How do the institutions of the European Union today reflect its historical roots? Or have they left those roots behind?

For a given AD curve, a reduction in the availability of labor or raw materials would cause the short run aggregate supply to shift to the left which would cause prices to fall and output to increase in the short run.

Select one:

True

False

According to the AD/AS model, an economic contraction caused by a leftward shift of aggregate demand remedies itself over time as the expected price level falls, shifting the short run aggregate supply rightward.

Select one:

True

False

According to the AD/AS model, if the long-run aggregate supply curve is vertical then the economy will always return to the level of output that occurs when the rate of unemployment is at its natural level.

Select one:

True

False

The sticky price theory of short-run aggregate supply says that when the price level falls unexpectedly, some firms will have higher than desired prices which increases their sales.

Select one:

True

False

As the United States entered World War II in the early 1940s, the U.S government increased military expenditures that caused the aggregate demand curve in the U.S. to shift to the left and that caused the rate of unemployment to rise to historic levels.

Select one:

True

False

How does managed competition, as conceived in the US, differ from that applied in the United Kingdom?

(300 words) No written responses.

According to the AD/AS model, the long-run aggregate supply curve is determined by the availability of labor, capital, natural resources and technology.

Select one:

True

False

A decrease in demand would cause the price level to fall and the SRAS to shift to the left.

Select one:

True

False

Suppose the economy is in long-run equilibrium. If there is an increase in government spending at the same time that an increase in resources reduces production costs, then in the short-run we would expect real GDP will rise and the price level might rise, fall, or stay the same.

Select one:

True

False

According to the AD/AS model, an increase in the price level with a corresponding reduction in real GDP could be created by natural disasters such as floods, hurricanes, unusually dry weather or pandemics that kill laborers.

Select one:

True

False

If the long-run aggregate supply curve shifts right, then the price level will decrease and real output will increase if the aggregate demand curve is stationary.

Select one:

True

False

According to the long run money market model, if money supply is growing at 4% in the United States and 5% in the United Kingdom, while real GDP is rising at 2% in the United States, and at 1% in the United Kingdom, what will happen to the nominal exchange rate between USD and British pound? What is the rate of expected depreciation?