Q.1Answer All 3 Questions Below. [Chapter 10]
1) “Even if a firm is losing money, it may be better to stay in business in theshort run.” Is this statement ever true?Explain under what condition(s) and include thesource pagesin the textbook.
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2) If it decides toshut down, should we expect that decision to be final? Explain usingyour localbusiness example.Summarize the article about closing ski resortsat:
https://www.latimes.com/local/lanow/la-me-rain-dry-california-20180213-story.html
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Q.2
Answer All 2 Questions Below
. [Chapter 11]
1)“Ninety percent of new products fail within two years—so you shouldn’t be so eager toinnovate.” Do you agree?Explain why or why not.
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2)How do differences in manufacturing costs affect which industries would be most likely to be affected by the removal of patents? Include thesource pagesin the textbook.
Summarize the article
at:
http://www.cnbc.com/2016/08/25/the-fda-and-congress-share-the-blame-for-outrageous-epipen-prices-commentary.html
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Q.3Answer All 2 Questions Below. [Chapter 12]
1)The more profitable a firm, the greater itsmonopolypower. Do you agree? Explain why or why not.Include thesource pagesin the textbook.
Summarize the article
at:http://fortune.com/2015/07/23/why-amazon-monopoly-accusations-deserve-a-closer-look/
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2)How donetwork effectshelp Facebook fend off smaller social-networking rivals?Include thesource pagesin the textbook.
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Q.4
Answer All 2 Questions Below
. [Chapter 12, 14]
1) U.S. pharmaceutical companies charge different prices for prescription drugs to buyers in different nations, depending onelasticity of demandand government-imposedprice ceilings.Explainwhy these companies, for profit reasons, oppose laws allowing reimportation of drugs to the United States. AnalyzePrice Discriminationstrategies.Include thesource pagesin the textbook.
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2) “Competition in quality and service may be just as effective as price competition in giving buyers more for their money.” Do you agree?Why?Explainwhymonopolistically competitivefirms such as local restaurants frequently prefer nonprice competition [e.g. advertisements] to price competition. Include thesource pagesin the textbook.Use the example of your local restaurants’ advertisements. [Chapter 13]
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