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Suppose that the demand function in a competitive market is given by D=100-1/2P. Sketch the demand curve on the price-quantity plane, using axes labels commonly adopted in economics. Use definite integrals to find the consumer surplus when the market price is 100.
While tariffs and quotas have declined drastically under GATT and the WTO, nontariff barriers have been on the rise. Why would countries use nontariff barriers to distort natural trade patterns? Are there situations when the use of nontariff barriers..
Why are cartels difficult to maintain? What is needed for predatory pricing to succeed in increasing long run profits? Consider the following game in which two players simultaneously decide whether to adopt technology A or adopt technology B. If the ..
Suppose that in addition to repairing your car, you can also spend money advertising. If you repair your car for Hours and spend A dollars advertising, your benefit(the amount you receive when you sell your car) is B(H,A)=220H-H^2+2A. Write down the ..
A British made automobile is priced at 20, 000 British Pounds. A comparable U.S. - made car costs US$26 000. One pound trades for US$2 in the foreign exchange market. Which country's cars are more competitively priced?
In a study published in 1980, B. B. Gibson estimated the following price and income elasticities of demand for six types of public goods: Do these public goods conform to the law of demand? For which public goods is demand price elastic? What types o..
A proposal has been made to increase the price paid by the consumers to the suppliers to $40. What will the resulting quantities demanded and supplied and the resulting utilization be?
The Fireyear and Goodstone Rubber Companies are two firms located in the rubber capital of the world. These factories produce finished rubber and sell that rubber into a highly competitive world market at the fixed price of £60 per ton. The local gov..
Why considering that it snows only once every ten years where Joe lives, Joe's expectations are almost always perfectly accurate." Are Joe's expectations rational.
Suppose government purchases amount is $3.5 trillion, transfer payments amount is $0.5 trillion, net interest payments are $0.25 trillion and tax revenue is valued at $2 trillion. Calculate the amount of the government deficit; Calculate the primary ..
The perfectly competitive firm's demand curve for labor is:
Explain how many spots of each kind should it purchase to meet se three goals and do so at minimum cost.
Assume that the low-calorie frozen, microwavable food company from Assignments 1 and 2 wants to expand and has to make some long-term capital budgeting decisions. The company is currently facing increases in the costs of major ingredients.
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