Assume there are three hardware stores in the market for hammers and that all three markets produce a single, standard model hammer. House Depot is an enormous mass producer of hammers and can offer a hammer for sale for a minimum of $7. Lace Hardware is a franchise and can offer the hammer for sale for a minimum of $10. Bob's Hardware store is a family owned and operated, independent hardware store and can offer hammers at a minimum price of $13. Given the scenario described, if the market price of hammers increased from $9 to $13:

Bob's Hardware's producer surplus would increase.

Lace Hardware's producer surplus would decrease by $3.

House Depot's producer surplus would decrease by $4.

House depot's producer surplus would increase by $4

Discuss examples of 1) elasticity, including an explanation of why or how they demonstrate the concept of elasticity; and 2) examples of externalities, again including an explanation of why or how they demonstrate the concept of externalities.

Discuss the shortcomings of majority voting in terms of the intensity of voters` preferences.

QUESTION 3

With the aid of a diagram, discuss market equilibrium for a public good in a hypothetical economy with two individuals who consume that public good assuming those individuals reveal their preference for that public good.

QUESTION 4

Discuss Nozick’s three “principles of justice” for a just distribution of income. In your discussion, include other Pareto criteria for policies aimed at redistributing income from rich to poor.

QUESTION 5

“The most common social choice rule is the “ordinary” majority rule. Every individual is given one vote and the issue or policy receiving the most votes wins the day. Under a direct democratic dispensation where each voter reveals his or her preferences directly via a referendum, the majority – voting rule requires that a proposal receives “50% plus one vote” support before it can be imposed on the community. If South Africa had a direct democracy and the public were asked in a referendum to vote for or against a increase in the rate of value added tax (VAT), the rate would not be increased if 4 000 001 out of a total of 8 million voted against such an increase.”

5.1 Briefly discuss the impossibility theorem as well as the ethical conditions that it advocates are the short-comings of the majority voting rule.

5.2 Discuss the shortcomings of majority voting in terms of the intensity of voters` preferences. QUESTION 6 Government subsidies are often used to intervene in a market to offset the effects of market failure or in the pursuit of other policy objectives. With the aid of a diagram, discuss the welfare effects of a subsidy

What is the investment multiplier and how does it work on the spending in an economy?

With regard to the common law contract of employment, in South Africa discuss:

4.2 FIVE (5) ways in which an employment contract may be terminated.

Strategy formulation focuses on effectiveness, whereas strategy implementation focuses on efficiency. Which is more important—effectiveness or efficiency? Give an example of each concept, and explain your answer. Your response should be at least 200 words in length.

Suppose annual inverse demand and inverse supply for groundwater for irrigation purposes are given by the following equations, where ? is millions of acre feet of water:

Demand: ? = 18 − 2Q/3

Supply: ?=1?/3

1. Draw the demand and supply curves. Compute the equilibrium quantity and price of water and indicate the equilibrium on the graph. Be sure to indicate the value of the vertical intercepts of the two lines. Label all the items in your diagram, especially demand, supply, ?∗, and ?∗.

2. Calculate consumer and producer surplus at the equilibrium outcome from part 1. Show your work. Indicate CS and PS on your diagram. (Recall that consumer surplus, for example, is the area under the demand curve and above the equilibrium price line.)

3. Suppose the government decrees that there shall henceforth be an absolute upper limit on groundwater use. The limit is set at ? = 12 million-acre feet. Calculate the loss in consumer and producer surplus that will result from the new restriction.

Cows are munching down zucchini, yellow squash and cabbage that Southern Valley Fruit and Vegetable farms grew and picked for restaurants and other institutions.

It’s one way the company is trying to make use of the glut of south Georgia vegetables caused by the closure of dining spots, schools and other big buyers. South Georgia farmers ship food from Florida to Canada, but the closures cost them 40- to 50% of their market. Growers are caught between being unable to sell all their crop and selling what they can in a flooded market with dropping prices. [Atlanta Journal and Constitution, May 3, 2020]

1. Draw a demand and supply diagram that illustrates the changes taking place in the vegetable market. Explain any changes you draw.
2. Assume vegetable farms operate in a perfectly competitive market. Draw a cost and revenue diagram that shows the effect on farms profits of “dropping prices"

Please don't copy other Chegg answers, thank you!

Why would a global business in the private sector want to hire McKinsey if McKinsey had already done consulting work for a competitor?

1) The 11 Incoterms consist of two groups and are listed below in order of increasing risk/liability to the exporter. Under the revised terms, buyers and sellers are being urged to contract precisely where delivery is made and what charges are covered. Briefly define below rules. (12 points )

a. Rules for Sea and Inland Waterway Transport; FAS, FOB, CFR, CIF

b. Rules for Any Mode or Modes of Transportation; EXW, FCA, CPT, CIP, DAT, DAP, DDP

2)List below the particulars that the consignment note shall contain

Use the simple exchange-rate model (supply and demand model for foreign exchange market) to answer the following questions.

2.1. Assume an initial equilibrium level for price and quantity in the US versus China exchange rate market. Plot the exchange rate of US dollars per Chinese yuan versus the quantity of Chinese yuans traded. Then graphically simulate the impact of an increase in tariffs imposed by the US on Chinese goods and indicate your forecast for the potential changes in the exchange rate and quantity of Chinese yuans traded.

2.2. Assume an initial equilibrium level for price and quantity in the US versus Mexico exchange rate market. Plot the exchange rate of US dollars per Mexican peso versus the quantity of pesos traded. Then graphically simulate the impact of an increase in Mexico’s productivity relatively to the US, and indicate your forecast for the potential changes in the exchange rate and quantity of pesos traded.

Develop a paper on Contending Forces and Contestable Markets for General Motors and Dell technologies. Refer the following paragraph for further details.

Briefly explain contending forces with the help of the definition and prepare a detailed paragraph based on the below hints.

Contending forces consist of (1) threat of entry, economies of scale, product differentiation, capital requirements, cost advantages and disadvantages, access to distribution channels, and government policies, (2) vertical and horizontal linkages of suppliers, (3) understanding consumers and buyers along with substitute and complement products. Linking these concepts in your discussion allows you to understand the contestability of the market structures.

Assessing competitive positions improves a firm's chances of designing strategies that optimize its environmental opportunities. The following criteria are often included: market share, breadth of product line, effectiveness of sales distribution, proprietary technologies and patent rights, price competitiveness, advertising and promotion effectiveness, location and age of facility, capacity potential/limitations and productivity, and the quality of the workforce.

1. Discuss how a global consulting firm might assist a government client. (International Business & Economics)

1.A baker of chocolate chip cookies is likely to have a ______________ price elasticity of supply than the seller of rare baseball cards due to ______________.

more elastic; the availability of inputs

less elastic; a shorter adjustment time

less elastic; a more flexible production process

less elastic; the availability of inputs

2.

A good that has an income elasticity of 2.3 is:

a necessity good.

a complement good.

an inferior good.

a luxury good.

3.

How much the demand for one good changes in response to a change in the price of a different good is measured by:

income elasticity.

price elasticity of demand.

cross-price elasticity.

price elasticity of supply.

4.

Which pair of goods is likely to have the largest positive cross-price elasticity?

Ramen noodles and a Rolex watch

Cross-price elasticity is always negative, and simply reported in absolute value.

Peanut butter and jelly

Butter and margarine

5.

Which pair of goods is likely to have the largest positive cross-price elasticity?

Ramen noodles and a Rolex watch

Cross-price elasticity is always negative, and simply reported in absolute value.

Peanut butter and jelly

Butter and margarine