Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Earlier this year the rising price of tortillas resulted in major protests in Mexico City combined with a warning from the Mexican central bank that this may fuel rising inflation. In response the President of Mexico announced that the government will be setting a price ceiling on the price of corn. [Corn is the major ingredient in tortillas, and there are millions of poor people in Mexico who survive largely on tortillas and beans. Some Mexicans are said to spend more than a quarter of their daily income on tortillas.] The President of Mexico lashed out saying, "we will not tolerate speculators and monopolists."
The New Your Times correspondent pointed out that many economic analysts have concluded that price of corn in Mexico has been rising because of the spiraling increase in demand for corn in the Unite States for use in the production of ethanol. (See Question B above)
A Mexican small tortilla maker is quoted as saying: "Look, we can't give our product away because we need a profit, and if they raise the cost of corn, there's no other way."
QUESTION:1. Assume that the small storefront tortilla maker quoted above operates in a monopolistically competitive industry that supplies most of the tortillas to the Mexican population. Analyze and explain the short run and long run implications for an individual firm and then for the "industry" as a whole if the price of corn in Mexico is allowed to rise. Go through a complete analysis on the effect of this on the demand for resources by the small tortilla makers, the effect on average and marginal costs, profits, and decisions to remain in production in both the long and short run. Properly labeled graphs that explain and properly illustrate your answer.
If the demand for a domestic currency decreases in a nation using a fixed exchange rate system, what must the central bank do to keep the currency value steady.
Suppose the price of food increases from Px1to Px2. On a clearly labelled graph, illustrate the income and substitution effects of the price change on the consumption of food.
Why would a nation such as the United States, which can presumably produce everything it needs itself, choose to trade with other nations?
What are the macro and micro problems? What systems are affected structural, psychosocial, technical, managerial, goals?
If you assume that the forward rate is a predictor of the future spot rate, does it suggest that the Dollar should have appreciated or depreciated from 2001 to 2002? (round to nearest integer)
Compute the premerger Herfindahl-Hirschman index (HHI) for this market. Suppose that any two of these firms merge. What is the postmerger HHI.
Elucidate how will this change affect international business. What other industries might be affected by similar technological advancements.
Utilizing the expectations hypothesis and the Taylor rule provide an interpretation of this comment in the article.
Suppose Shaqueena is currently earning income of $23,000 (I =23) and can earn that income next year with certainty.
Explain how would the number of workers hired (variable input) change. This is a profit maximizing firm, also explain the profit maximization condition the firm uses.
Eluciadte the law of demand. Why does a demand curve slope downward. How is market demand curve derived from individual demand curves.
Elucidate what is the cross elasticity of demand for pipes and pipe tobacco.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd