8. Suppose that demand for OVO themed lint rollers is given by

? = 120 – ?.

There are only two firms that produce this coveted product, they both have cost function

?? = 60 + q? 2 , where ? = 1,2 denotes the factory.

Total production of the lint rollers is equal to output from the two firms.

a. [10 marks] Suppose the two firms compete on quantities. Find the Nash equilibrium price and output of each firm. How much profit does each firm make?

b. [15 marks] Suppose that firm 1 gets this innovative product to market faster, so it makes its output decision before firm two. Find the Stackelberg equilibrium price and output of each firm. Are their profits different than in part(a)? If so, explain why.

13. What mistake might a business make if it confuses marginal cost and average cost?

14. How does adverse selection explain why it might be difficult to change the Affordable Care Act?

Corruption is widespread in many less developed countries. The U.S. anti-corruption laws sanction the U.S. multinational from bribing foreign entities. (The Foreign Corrupt Practice Act of 1977, amended 1988, and the International Anti-Bribery Act of 1998.) Do the anti-corruption laws handicap American firms in their ability to compete against multinationals from elsewhere?

Describe in detail the reasons behind the two-way relationship between health and economic growth. Explain the factors for each side of the relationship between health and economic growth in detail in words. Please provide two factors for each side of the relationship, two that explain why better health results in higher economic growth and two factors of why higher economic growth can lead to better health.

1. How does the effectiveness of voting with one’s feet depend on how taxes are assessed? Which type of taxation is most likely to generate socially optimal outcomes?

During the war, the same arms merchant often sells weapons to both sides of the conflict. In this situation, a different price could be offered to each side because there is no danger of resale. Suppose a US arms merchant has a monopoly of a special air-to-sea missiles and is willing to sell them to both India and China. India's demand for missiles is P = 64 - 4x and China's is P = 80 - 6y, where P is in millions of dollars. The marginal cost of missiles is MC = 4Q, where Q = x + y.

(a) How many missiles will be sold to each country and what price will be charged to each country? Show your work in details.

(b) Find out the price elasticity of demand for each country at that price and check that the country with less elastic demand is indeed paying a higher price.

1. Anna is planning to save $3 million for retirement over the next 30 years.

1. If she’s earning interest at a rate of 12% compound quarterly. How much money she should deposit each quarter.
2. If she lives after 25 years. What annual level of living expense will those saving support? (same interest rate of 12% compound quarterly.)
3. Suppose her retirement living expense will increase by $5000 each year. Determine the annual spending plan. (same interest rate of 12% compound quarterly.)

37. Mavis Corporation has an agreement with its workers to index completely the wage of its employees to the CPI. Mavis currently pays its production line workers $7.50 an hour and is scheduled to index their wages today. If the CPI is currently about 130 and was 120 a year ago, Mavis should increase the hourly wages of its workers by about...

38. Thomas earned a salary of $50,000 in 2001 and $70,000 in 2006. The consumer price index was 177 for 2001 and 265.5 for 2006. Thomas’s 2001 salary in 2006 dollars is...

39. Suppose the CPI was 95 in 1955, and suppose currently the CPI is 475. According to the CPI, $100 today purchases the same amount of goods and services as...

40. Suppose that twenty-five years ago a country had nominal GDP of $1,000, a GDP deflator of 200, and a population of 100. Today it has nominal GDP of $3,000, a GDP deflator of 400, and population of 150. What happened to the real GDP per person?

41. Assume the consumer price index was 225 in 2006 and 234 in 2007. The nominal interest rate during this period was 6.5 percent. What was the real interest rate during this period?

Please show work. Thank you

1. Read “The Selection of Social Media Channels” and complete the activity “’How to Choose the Best Social Media Site for Your Business’”

READING “HOW TO CHOOSE THE BEST SOCIAL MEDIA SITE FOR YOUR BUSINESS”

1. Using your own knowledge, identify whether you think Business-to-Business (B2B) or Business-to-Consumer (B2C) is the main user of each of the following social media channels when it comes to marketing.

2. Read the article from Inc. Magazine: “How to Choose the Best Social Media Site for Your Business”. Your instructor will provide you with the link.

According to author Michelle Manafy, what kinds of businesses should use each of the following social media marketing channels?

Facebook Twitter LinkedIn Other Pinterest

• Tumblr • Google +

3. Recall the businesses you looked at in “Activity: Sizing up the Competition.” Are there any social media channels you think those businesses aren’t utilizing, but should be? Justify your response by referencing points made by the Inc. Magazine article.

After consulting these resources, select three social media channels that you think might work well for marketing your business. State why you think these channels are your top three choices.

4. As you proceed through the textbook, you will learn about various social media channels, who they reach, and how they are used for advertising purposes. Once you have read all the content in the text, look back at this activity. Would you still choose the same social media channels to market your business? Why or why not?

Explain the following ten words, one word with three sentences. Don't use Wikipedia！！！

Six Sigma

Assurance

After-sale service

Customer relationship management

Downstream

Upstream

Job analysis

Service reliability

Electronic data interchange (EDI)

Design of experiments (DOE)

How does inflation stimulate the economy? What effect does inflation have on wages? Why is too much inflation bad?

Is there a difference in the economic gains from trade when interpersonal exchange occurs within, compared to across, geo-political boundaries?

SECTION B – CASE STUDY

Read the scenario below and answer the questions that follow:

South Africa has a negative trade balance with the East (Asia). The value of imports from the East is more than the value of the goods that South Africa exports to Asia. This means that the trade balance or terms of trade is not in favour of South Africa. This is not a uniquely South African phenomenon. Part of the reason for the trade war between the United States and China is due to the fact that terms of trade tend to be skewed in favour of China.

Source: Examiner

4BQuestion 1

1.1 Use an appropriate diagram to illustrate and explain the effect of the scenario above on the foreign exchange market. (8)

1.2 Discuss the three (3) policy options available to South Africa to mitigate against the outcome in 1.1. (6)

1.3 Briefly discuss the effect of the trade wars between China and the United States on the South African current account. (6)

4. Go to the eText and pull out a thorough definition of consumer choice. What is this concept? How does utility tie in with this concept? Explain the income and substitution effects. Also explain how they relate to consumer choice.

Explain the difference between the two circuits, C-M-C and M-C-M.