Suppose the government proposes a relief package in an urgent attempt to bail out virtually all industries across the board and offset the economic damage unleashed by the 3-month long coronavirus [COVID-19] crisis episode, and indeed, keeps its promise. Required: By approximately what factor [in the long-run] are businesses likely to discount their negative cash flows, to work out how much is needed to level their current losses? Further Instructions: Generally, I expect to see 'some kind' of formula or general rule, without much emphasis on quantitative values. Remember, this is an essay question, so, please feel free to express yourself as you please. I have allowed 40 lines per attempt (the maximum permitted by the system). All kinds of attachment file types are accepted. Though, voice notes are only considered supplementary at best (i.e. for support purposes). After all, I would much prefer to see something once than to hear about it a thousand times

Suppose the government proposes a relief package in an urgent attempt to bail out virtually all industries across the board and offset the economic damage unleashed by the 3-month long coronavirus [COVID-19] crisis episode, and indeed, keeps its promise. Required: By approximately what factor [in the long-run] are businesses likely to discount their negative cash flows, to work out how much is needed to level their current losses? Further Instructions: Generally, I expect to see 'some kind' of formula or general rule, without much emphasis on quantitative values. Remember, this is an essay question, so, please feel free to express yourself as you please. I have allowed 40 lines per attempt (the maximum permitted by the system). All kinds of attachment file types are accepted. Though, voice notes are only considered supplementary at best (i.e. for support purposes). After all, I would much prefer to see something once than to hear about it a thousand times

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2) Explain why X-inefficiency is likely to be more prevalent in an industry in which firms have market power.
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