Readers Question: “Merger activity represents a major force for structural change in competitive markets. Examine the principal objectives underlying such strategic developments and consider the degree of success enjoyed by firms in pursuit of those objectives.” This question is a rather complicated way of saying: Discuss why firms wish to merge. Using examples, discuss whether …
Readers Question: why are banks still not lending despite the bail out and increase in money supply? If all this time they have taken risk, why cant they take risk anymore? They should have more borrowers now due to low interest rates,if they can help small business who need the money then growth can increase …
The Neo-Classical Theory of Firms makes the following assumptions Firms are profit maximisers. Firms will maximise profits where MR=MC In the short run, firms are subject to diminishing returns. In the short run, capital is fixed, therefore MC is upwardly sloping after diminishing returns sets in. Prices are flexible. If there is a shortage of …
Readers Question: Why might the public ignore future tax liabilities when making spending decisions? A tax liability is a tax bill that you will have to pay the government in the future. In theory, if you have a large tax liability in the future, you will reduce current consumption to be able to pay the …
Readers Question: Do you know if there is a link between an economic downturn and blood donation? Does more people unemployed mean people have more time to donate blood, are unemployed people under to much stress to donate blood or should governments pay for blood donars. First it depends whether blood donation is free (charitable …
The Cardboard bike needs no oil. What is the best way to deal with high oil prices? As both a motorist and cyclist, high oil prices are a mixed blessing. It now costs £6o to fill a tank of petrol; I have seen the proportion of my income spent on petrol rise considerably. However, rising …
My students are generally pretty un-inventive when it comes to excuses for not doing homework. Popular excuses include: “I was doing business studies / geography / history coursework” “I had football practice” “I couldn’t be bothered” “I forgot” “You mean, I was given homework?” I have heard a few good ones though I was driving …
Readers Question: what are the reason of dollar appreciation while the world economic situation is not good! i would apprecitae if you provide me a simple comprehensive answer. Many factors would normally make the dollar depreciate (fall in value) US interest rates cut to 1% US current account deficit US entering into recession Uncertainty over …