Why did policy makers reverse this stance and start welcoming FDI in the 80s and 90s? Provide an example of FDI in India by a foreign from that validates this policy reversal.

Describe how a company can avoid arbitrage if it wants to pursue price discrimination of the following products:

a. Beer for export; b. Vacuum cleaners – products at a discount are supposed to be offered to some buyers; c. Bus drives; d. Plastic that is an intermediate product with several applications.

The money supply is fixed at $60billion and the equilibrium value of money 1/P = 1/2. The Federal Reserve increases the money supply by $20 billion and as a result the new equilibrium price level is 5. Use the Money Supply-Demand Model (Diagram) to explain clearly how equilibrium is restored in the model.

2. A firm is operated under monopoly where there are two groups of customers. The market demand from group 1 is given by Q1 = 80 – P. The market demand from group 2 is given by Q2 = 40 – P/2. The firm’s marginal cost function is given by MC =20.

a. Total market demand is given by Q= Q1 + Q2 = 120 – 3P/2. Find the firm’s producer surplus from combining the two markets and set a single optimal price.

b. Find the firm’s total producer surplus from separating the two markets (third degree price discrimination.

c. Use price elasticity of each demand function to explain why the third-degree price discrimination in b. cannot increase the firm’s producer surplus

A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps all the revenue from ticket sales. The city charges the team $500  each month for the three-month season. The team pays the players and manager a total of $2500 each month. The team charges $10 for each ticket, and the average customer spends $7 at the concession stand. Attendance averages 100 people at each home game.

Part 1. The team earns an average of $________________ in revenue for each game and $______________ of revenue each season.

With total costs of $_____________ each season, the team finishes the season with $________________ of profit.

Part 2   In order to break even, the team needs to sell   tickets for each game. Round to the nearest whole number.

The Federal Reserve System was established to provide a stable monetary system for the entire economy. The Federal Reserve Bank (the Fed) has three major tools to control the money supply: 1) reserve requirements, 2) discount window for loans to member banks, and 3) open market operations.

When the economy is in a recessionary mode, what will likely be the actions by the Federal Reserve using monetary policy? Suppose the Federal Reserve purchases a $100,000 bond from John Doe, who deposits the proceeds in the Manufacturer's National Bank; what will be the impact of this transaction on the supply of money?

How do each of the Fed's tools work? What is the fractional reserve system, and how does it work in relation to the Fed? Review the Federal Reserve System and how the Fed alters the monetary base to achieve the levels of money supply in the economy.    

Comment on Robert D. Behn and James W. Vaupel’s quote on values reprinted in the text: “Decisions depend upon judgments—judgments about the nature of the dilemma, the probabilities of events, and the desirability of consequences. Decision-making is inherently subjective.” What do you think about this idea that decisions are subjective? Can you give an example of how you have witnessed your government make a decision that seemed more subjective than objective? How does that make you feel that the subjectivity of administrators is at work in their decision-making? How do the different approaches to decision-making treat “values,” and which ones seem more value driven than others?

If we accept that the marketplace is the regulator for those industries where there is no monopoly, do you think that the marketplace makes the same decisions as a regulator? Why or why not? What objectives would a regulator who is regulating a natural monopoly pursue? Are these the best goals? Why or why not?

As the owner of the only tennis club in an isolated wealthy​ community, you must decide on membership dues and fees for court time. There are two types of tennis players.​ "Serious" players have demand

Q1=12−P

where Q1 is court hours per week and P is the fee per hour for each individual player. There are also​ "occasional" players with demand

Q2=4−0.25P

Assume that there are1,000 players of each type. Because you have plenty of​ courts, the marginal cost of court time is ​$0.

You have fixed costs of ​$12,000 per week. Serious and occasional players look​ alike, so you must charge them the same prices.

a. Suppose that to maintain a​ "professional" atmosphere, you want to limit membership to serious players. How should you set the annual membership dues and court fees​ (assume 52 weeks per​ year) to maximize​ profits, keeping in mind the constraint that only serious players choose to​ join? What would profits be​ (per week)?  ​(round your answers to two decimal​ places)

The annual membership fee is:

The court fee is:

Weekly profit is:

b. A friend tells you that you could make greater profits by encouraging both types of players to join. Is your friend right? What annual dues and court fees would maximize weekly profits? What would these profits be? (round your answers to two decimal places)

The annual membership fee is:

The court fee is:

Weekly profit is:

c. Suppose that over the years, young, upwardly mobile professionals move to your community, all of whom are serious players. You believe there are now 3500 serious players and 1000 occasional players. Would it still be profitable to cater to the occasional player? What would be the profit-maximizing annual dues and court fees? What would profits be per week? (round your answers to two decimal places)

The annual membership fee is:

The court fee is:

Weekly profit is:

4. Explain the concept of bailment. Describe the obligations of the bailor and the bailee and the distinguish voluntary and involuntary bailment. Give an example of a bailment for value

Explain ethnocentric and polycentric orientation and show the differences between them support your answer with examples Giving examples

uestion 322 pts

The profit-maximizing rule MR = MC is:

Group of answer choices

followed by a perfectly competitive firm but not by a monopoly

followed by a monopoly but not by a perfectly competitive firm

followed by all types of firms

not followed by a monopoly because it would reduce economic profit to zero

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Question 332 pts

The shape of the marginal cost curve (MC) is driven by:

Group of answer choices

Diminishing returns

Diminishing returns, then specialization

Specialization

Specialization, then diminishing returns

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Question 342 pts

Many customers will walk right past a diner that serves coffee and go to Starbucks, where they pay more for a cup of coffee. For these customers, cups of coffee are differentiated by:

Group of answer choices

location

style

quality

type

A monopolistically competitive firm has excess capacity in the long run. This means that it:

Group of answer choices

produces less than the output at which average total costs are minimized.

could produce more by moving to a larger plant.

produces less than the output at which price and marginal cost are equal.

doesn't maximize profits.

Question 22 pts

If two firms are identical in all respects except that one has more capital than another, the total product curve for the firm with more capital:

Group of answer choices

must equal the total product curve for the firm with less capital

will show no diminishing marginal returns

will lie above the total product curve for the firm with less capital

will lie below the total product curve for the firm with less capital

Question 32

Suppose that the market for haircuts in a community is perfectly competitive and that the market is initially in long-run equilibrium. Subsequently, a decrease in population decreases the demand for haircuts. In the short run, we expect that the market price will ________ and the output of a typical firm will ________.

Group of answer choices

rise; fall

rise; rise

fall; fall

fall; rise