Q1. What are the factors that will allow them to increase their added value in this type of competitive environment? What type of response to its product launch do you think every book will face from its rivals? To what extent are network effects important in this market? How could profits decline?
Q2. The economy of Kenya is in recession, and there is a large recessionary gap. As its economist, the World Bank hires you and asks you to describe the discretionary and automatic fiscal policy actions that might occur.
Q3. "When per-unit production costs change for reasons other than changes in real output, the aggregate supply curve shifts." Explain what does it means productivity may not change? How can that work?