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Suppose that rising demand for ethanol has increased the price of sugarcane, and that land devoted to growing sugarcane is also commonly used to grow rice.
a. What impact would an increase in the price of sugarcane have on the supply of rice? Explain your answer.
b. Suppose the demand for sugarcane increases, what impact does this have on the supply of sugarcane? Briefly explain your answer.
Explain how low must a quota be in effect to have an impact. Using a demand-and-supply diagram, illustrate and explain the net welfare loss from imposing such a quota.
With respect to Company A's Investment in Company B account and its net income, which of the following is true?
An increase in the price of a good causes a:
Suppose that firm A and firm B can form a joint venture to pursue either or both of their R&D programs.
Panel B shows how the demand for X shifts when the price of related good Y increases from $60 to $68. Use the information in Panel B to calculate the cross-price elasticity. Are goods X and Y substitutes or complements?
Find out equilibrium cost and quantity. Illustrate on your graph how a rise in cost of automobiles would affect gasoline market.
Illustrate what potential conflicts of interest could arise in a management buyout in which the investment bank is also likely to be an investor.
Do changes in fixed cost alter the profit maximizing level of output for a profit maximizing firm in the short-run? Why or why not? Under what conditions is it more profitable for a firm to operate at a loss than to shut down production temporarily?
Are the dual goals of economic development and the reduction of population pressure on the envrionment compatible or conflicting objectives?
A firm has the production function y = x1^1/2 * x2. In the short run it must use exactly 15 units of factor 2. The price of factor 1 is $75 per unit and the price of factor 2 is $2 per unit. Derive the firm’s short-run marginal cost function.
Illustrate what are the indicators of underdevelopment in a world economy.
Distinguish between discretionary and nondiscretionary fiscal policy. Which is most effective at combating unemployment? Which is most compatible with a "free" market?
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