890.....

CyrilFiggis, the managing director of theFiggisAgency is considering marketing a product that the company developed to get rid of ants. This product was developed as a result of the repeated complaints of one of their top executives, Sterling Archer, who repeatedly found himself with a serious ant problem in his luxurious penthouse suite despite the ongoing vigilance of his long-suffering valet,Woodhouse. Cyril now wants to understand the economics of the product before making the decision on whether or not to launch. Cyril has established the following marketing channel to the ultimate consumer including the gross margin requirements of each of the channel members: TheFiggisCorporation (manufacturer) 35% gross margin Mallory's Experiential Marketing (sales agent) 10% gross margin TrexlorSales Agency (distributor) 7.5% gross margin Dillon Wholesalers (wholesaler) 5% gross margin National Retailers (retailer) 45% gross margin Consumer Cyril has determined that theidealretail selling priceto maximize consumer sales for "Ants No More" is$18.99

Blake lives in Seattle and is planning a get-away with some friends to San Diego and needs to find a hotel for her group. Blake enters "discount hotels san diego" in the Google search bar. The following screenshot shows the ads that appear in the SERP.

List the advertisers that earned an impression from Blake's search. Do you see a difference between the top listed ad and the others that earned an impression? What may have helped the top ad rank higher than the others?

Consider the Solow-Swan growth model, with a savings rate, s, a depreciation rate, , and a population growth rate, n. The production function is given by Y = AK + BKL¹, with (0,1), where A and B are positive constants. 1. Does this production function exhibit constant returns to scale? Explain why. 2. Does it exhibit diminishing returns to capital? Explain why. 3. Express output per person, y = Y/L, as a function of capital per person, k = K/L 4. Write down an expression for y/k as a function of k and graph. (Hint: as k goes to infinity, does the ratio y/k approach zero?) 5. Use the production function in per capita terms to write the fundamental equation of the Solow- Swan model. 6. Suppose first that sA < +n Draw the savings curve and the depreciation curve. What number does the savings curve approach as k goes to zero? As k goes to infinity, the savings curve approaches a number: what number is that? Is it zero? 7. Under these parameters, will there be positive growth in the long run? (Remember that A and B are constants). Why? 8. Imagine that we have two countries with the same parameters (same A, B,s,, and n). One of them is rich and the other is poor. Which one of the two will grow faster? Why? Does this model predict convergence? 9. Suppose now that sA > +n. Draw the savings and depreciation curves. Under these circumstances, will there be positive growth in the long run? Why? 10. If s = 0.3, A = 2, B = 2, = .3 and n = 0.03, the growth rate converges to some value as time goes to infinity. What is this value?

X = KN M = 4$ : w = 1 $ /N : pK = 1 $ /K

1. Write out the solution for the two-period model in terms of the Cobb-Douglas Demand System. What role does the -parameter play as regards end-of-period wealth?

2. Write out the solution to the infinite horizons model.

3. Arrange the accumulated capital equation to solve for the Cambridge equation. Be sure to identify the Saving-side of the relation and the Investment-side of the relation.

Suppose Canada is a closed economy and in its long-run equilibrium initially. The government increases its subsidy to new capital investment projects. At the same time, the shortage of computer chips/semiconductors forces many manufactures to delay their spending on replacing depreciated machinery and equipment.

In the context of the long-run classical model, examine the effects of the above events on the following variables in the long run:

output real interest rate national savings real rental price of capital price level Explain and support your answer by ONE diagram for the market of loanable funds and ONEdiagram for the rental market for capital.

a) Suppose that the US is currently in a balance of payments equilibrium and receives shocks that reduce both Y1 and Y2 by 3%. In the intertemporal model, the US balance of payments moves into ___ and world prices P* ___.

deficit, rise

surplus, rise

does not change, rise

deficit, fall

b) In the gold standard model, two large economies have negative correlation in their business cycles. D sustains a 1% increase in output in Y1, and 2% decrease in Y2. F has the opposite, output decreasing by 2% for Y1, and increasing by 1% for Y2. Under flexible exchange rates, the domestic currency should _____:

appreciate by 6%

appreciate by 3%

depreciate by 6%

depreciate by 2%