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Suppose that the production of $1 million worth of steel in Mexico requires $100,000 worth of taconite. Mexico's nominal tariff rates for importing these goods are 20 percent for steel and 10 percent for taconite. Given this information, calculate the effective rate of protection for Mexico’s steel industry.
The current price of gold is $1,800 an ounce, and the current futures price is 1,850 an ounce. Suppose you expect the price of gold to rise and you enter a long position into a future contract to buy gold. What is the amount that you must deposit (ei..
Bread and butter are complements. A decrease in the price of bread results in a(n)
Discuss which key concepts and topics in this course have made you a stronger candidate to enter the business world.
The production function of a firm is given in the table below.
what is the diamonds water paradox and how is it
Looking at both the schedules of supply and demand, as well as the graph of the demand and supply curve for Maine Lobsters, what is the equilibrium price of lobsters and equilibrium quantity of lobsters demanded and supplied at that price?
Illustrate what are the types of business organization/ company forms, and their pros and cons (advantages and disadvantages) from an economist point of view.
Suppose you have the choice of investing in (A) a zero-coupon bond, which costs $500 today, pays no coupon during its life, compounds semi-annually, and then pays $1,000 after 10 years, or (B) a bond which costs $750 today, pays $25 in interest semi ..
An individual must decide whether or not to pursue a business opportunity. If he does pursue the opportunity, then he will get a $20 profit if the business is successful and a $10 loss if the business fails. Apply the maximin and minimax regret crite..
Elucidate why does strong mono tonicity implies local non satiation but not vice versa
Suppose that a firm’s production function is Q = min{K, L}. Currently, the wage is w = 8 and the cost of capital is r = 8. What is the minimum cost method of producing Q = 40 units of output? Suppose that wages fall to w = 4. Keeping total cost the s..
Mining is proposed for a wilderness area that provides two benefits: recreation due to backpacking opportunities and biodiversity there are endangered wildlife and plants.
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