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alekssr [168]
2 years ago
15

Why does Prof. St. Clair argue that allowing Lehman Brothers Investment Bank to fail in 2008 (i.e., during the Bush Administrati

on) was a terrible decision?
Business
1 answer:
snow_lady [41]2 years ago
6 0

According to Prof. St. Clair, allowing Lehman Brothers to fail in 2008 breached the Fed's primary mandate, and worsened the financial crisis of 2008.

<h3>What caused the Lehman Brothers' failure?</h3>

The main cause of the failure of Lehman Brothers Investment Bank was its involvement in the subprime mortgage market.

Lehmann Brothers recorded unprecedented loss due to the 2008 subprime mortgage crisis.

The investment bank held onto large positions in subprime and other lower-rated mortgage tranches when securitizing the underlying mortgages.

Thus, according to Prof. St. Clair, allowing Lehman Brothers to fail in 2008 was a terrible decision because its failure breached the Fed's primary mandate, and worsened the financial crisis of 2008.

Learn more about Lehman Brothers' Failure at brainly.com/question/7550583

#SPJ1

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Perfect elasticity and zero elasticity refer to the same event, which occurs when quantity demanded or quantity supplied change
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Answer:

b

Explanation:

perfectly elasticity is when at an existing price quantity demanded can increase or decrease.the numerical co efficient is always infinity ♾️

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3 years ago
What is an advantage of using a comparsion method of assesment ?
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B (sorry if its wrong!!)
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Public Good Contribution: Three players live in a town, and each can choose to contribute to fund a streetlamp. The value of hav
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7 0
2 years ago
Samantha works as a marketing manager for a cosmetics manufacturer. She plans to suggest a specific type of business model that
galina1969 [7]

<em>A) Franchise is a business model Samantha have in mind.</em>

Answer: <em>A) Franchise </em>

Explanation:

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Under the same name and business line, the business is carried out by the new reciters and a amount of their profit is earned by the owner of the business. Here in this case Samantha is using Franchise business model.

8 0
2 years ago
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Suppose a monopolist's costs and revenues are as follows: ATC = $50.00; MC = $35.00; MR = $45.00; P = $55.00. The firm should
bekas [8.4K]

Answer:

The firm should increase output and reduce price

Explanation:

For a monopolist, there can be one of the following three scenarios at a time point in time:

Scenario one, MR = MC: For a monopolist, profit is maximized at the point where marginal revenue (MR) is equal to to marginal cost (MC), i.e. where MR = MC.

Scenario two, MR < MC: But when the MR < MC, it indicates that the monopolist is currently producing a higher quantity of output and it is not maximizing profit. In order to maximize profit, the monopolist has to reduce output until MR = MC.

Scenario three , MR > MC: But when the MR > MC, it indicates that the monopolist is currently producing a lower quantity of output and it is not maximizing profit. In order to maximize profit, the monopolist has to increase output until MR = MC. Also, the monopolist has to reduce price in order to sell the increased quantity of output.

From the question, the monopolist falls into scenerio three as MR > MC, i.e. $45 > $35. Therefore, the monopolist should increase output until MR = MC and reduce price in order to maximize profit.

3 0
2 years ago
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