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When a leading developing country defaults on its loan to foreigners, discuss (with the aid of loanable funds market diagram) why interest rates will rise on bonds issued by many other developing countries.
Quantity, whole revenue and profit when company charges different price in each market and exploits its total profit.
A gardener can use one of the three brands of fertilizers during the next growing season. The following decision table shows the expected gross income per acre for each fertilizer brand and weather condition for the growing season.
Present and future values for different interest rates. Find the following values. Compounding/discounting occurs annually. Round your answers to the nearest cent. An initial $700 compounded for 10 years at 9%. Define present value. How are present v..
Assume there are N firms A1 , . . ., AN serving a market with demand given by D(p). Assume that these firms compete for market share via quantity competition. Finally, let cAi (Q) denote the cost function for firm Ai. Describe this environment as a g..
Explain what is meant by price floors and price ceilings. What are the consequences of a) a price floor that is higher than the market equilibrium price; b) a price ceiling that is lower than the market equilibrium price. Demonstrate your answers gra..
The constant price elasticity of demand for cigarettes has been estimated to be -0.5. To reduce smoking by 50%, approximately how much tax needs to be added to a $1 pack?
Certain environmental laws prohibit EPA from considering the costs of meeting various standards when the levels of the standards are set. Is this a good example of “putting first things first” or simply an unjustifiable waste of resources? Why?
q1. consider a firm as we did in the notes that maximizes it profits by selecting how many workers and how much capital
firm competing in a monopolistic competitive market. What conditions exist when economic profits are maximized.
Draw Lorenz curves and calculate the Gini coefficient and the coefficient of variation for the income distributions (a)–(f). In each situation, the first set of numbers represents the various incomes, whereas the second set of numbers represents the ..
Discuss why black Monday, the day when the djia declined more than 20% is not evidence against the efficient market hypothesis. What issues do critics cite when discussing why sarbanes-oxley has let to a decline in USA capital markets?
Does NAFTA affect the automobile industry's decisions on what to do with labor and capital costs? If so, how? In your opinion, was this trade agreement good for the United States and Mexico from an economic standpoint?
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