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Provide a graphical example of what could potentially happen to the number of people employed in an economy if the government were to decide to raise the minimum wage; in addition, provide an explanation of what occurs when the minimum wage is increased (theoretical).
Complete the International Trade Simulation. Elucidate how absolute also comparative advantage was used in your simulation.
A sports store puts designs 12 different designs on sweat shirts. Setup between each design takes an hour and costs $18,000. Once setup, at a cost of $8,000 they can produce 1,000 units. Does this production exhibit scale economies or scope economies..
Assume that a national restaurant firm called BBQ builds 10 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $400,000 of equipment and furnishings. What is the amount of economic investment that ha..
In many modern U.S. industries, the following patterns seem to hold: Small firms are more likely to outsource production of inputs that are large firms; “Standard” inputs are more likely to be outsourced than “tailor-made” inputs.
Phillip Haynes is the controller of a company that has the sole authority to manufacture your product. The inverse market demand curve is P=900-1.5Q. Your total cost equation is C(Q)=2Q+Q2. What is the output you should produce, the price you should ..
Consider a competitive market. Starting from the long-run equilibrium, suddenly, fixed costs decrease, although variable costs remain unchanged. Discuss the short-run and long-run changes in market equilibrium. Include all figures and diagrams you nd..
Suppose a company incurs the following cost: labor, $600; equipment, $300; and materials, $200. The company owns the building, so it doesn't have to pay the usual $900 in rent. a) What is the total accounting cost? b) What is the total economic cost?..
Shepherd Book invests $15,000 in a pension. During the first year, the pension will be worth $1,000, the second year $2,000, the third year $1,000, and the fourth year $2,000, and so on. What is the annual worth of this pension to Rev. Book, given th..
Illustrate If G rises to 200 and T rises to 150. How much would the GDP change as a result.
Use the Mundell-Fleming Model to predict what happens to aggregate income y, the exchange rate e, and the trade balance NX, under both floating and fixed exchange rates in response to each of the following shocks:
Biff owns and operates a golf driving range on land that he also owns. Last year his accountant calculated that his driving range makes $50,000 profits per year. Last year a property management company offered to lease Biff’s land from him for $80,00..
A company named Highway Data has been given a contract to install highway information signs along a 500 mile portion of interstate 555. The signs will be placed at the end of each 10 mile section. The signs cost $138 each. Data fiber optic cable comm..
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