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Calculate the opportunity cost of producing an additional pound of ham in Portugal and Spain, as well as the opportunity cost of producing an additional pound of cod fish in Portugal and Spain. Identify which country has an absolute advantage in producing each good. Identify which country has a comparative advantage in producing each good. Be careful to put your answers in the correct units.
Distinguish between the urban formal and informal sectors, and discuss both the positive and the negative aspects of the informal urban labor market.
The inverse demand curve for widgets is P = 130−2Q. There are two firms, A and B, who produce widgets. Each firm has a constant marginal and average cost of producing the good that equals 10. Firms compete in quantities and they make their quantity c..
Jen, Eric, and Kurt are all buyers of chain saws. Jen’s demand function is DJ (p) = 520 − 13p, Eric’s demand function is DE(p) = 40 − p, and Kurt’s demand function is DK(p) = 200 − 5p. Together, these three constitute the entire demand for chain saws..
The elasticity of demand for a firm’s product is -4 and its advertising elasticity of demand is 0.12. Determine the firm’s optimal advertising-to-sales ratio. If the firm’s revenues are $70,000, what is its profit-maximizing level of advertising?
The Morris Corporation has $400,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris's annual sales are $2 million, its average tax rate
A Spanish can either produce 3 liters of win or 1 kilos of cheese. A Portuguese worker can either produce 4 litres of win or 12 kilos of cheese 1) Which countries have absolute advantages in which goods? Explain 2) Which countries have comparative ad..
Students for a Democratic Society (SDS) was an activist organization in the 1960s that protested the Vietnam War, racial injustice, and economic exploitation. For the most part, the organization favored direct action and protest, but a small faction ..
q.a social scientist claims that the average adult watches less than 26 hours of television per week. he collects data
The US government should be the catalyst for innovations in intermodal transportation. Industry, in a free market economy,
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..
What should the government limit the number of auto and parts makers, the competition for would be limited. Please explain more on this subject.
In the early 1990s, land prices plummeted in Japan, leading many bank borrowers to default on their loans. Stock prices also came down sharply, reducing the value of banks’ shareholdings. The net result was that most Japanese banks fell into severe f..
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