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We have an imaginary system with planets, Alderaan, Bespin, Coruscant, Dagobah, and Endor, with shares of system spending given by 12%, 24%, 55%, 3%, and 6%, respectively. System GDP is $10 trillion. Calculate:
(a) Their respective outputs; and (b) The values of their exports to each other. Demonstrate that a form of the gravity model holds for this example. Other than economic size, what are two other factors that seem to play a very important role in determining trade volumes? (You may assume interplanetary travel is possible)
Call Us demand function is Q = 70 – 0.25P; MC = 16Q and total fixed cost (TFC) is 22% of total revenue (TR) at the revenue maximizing level. (i) Derive the AFC (average fixed cost) at the profit maximizing level. (ii) What is the profit at the profit..
What are The Bill of Rights and who pushed for them to become part of the US Constitution? What would have happened if The Bill of Rights was not added to the US Constitution?
Provided Ajax's pricing strategy, illustrate what is marginal revenue function for Ajax.Compute profit-maximizing level of output for Ajax.
Suppose 80% of US trade is with Canada and the rest is with Mexico. If the dollar appreciates by 10% against the Canadian dollar and appreciates by 20% against the Mexican peso, what is the percentage change in the effective exchange rate of the Unit..
1. Why markets fail to achieve economic efficiency? Site 2 clear examples.
Consider a monoeentrie city that establishes a maximum building height for business structures. The maximum height is the height of buildings one kilometer from
Does gender-based marketing play a significant role in Mattel's core marketing strategy as evidenced by two of the company's top brands (Barbie and Hotwheels) a
Explain why if two mutually exclusive projects are being compared, the short-term project might have the higher ranking under the NPV criterion
What tools do you Integrated Development Environments (IDEs) provide to help you with ensuring the reliability of our code?
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 80 – .5P, and the marginal cost of production is $100. a. Determine the optimal number of units to put i..
What are the characteristics of perfect competition? Why do restaurants tend to display characteristics of perfect competition and what are the long-run benefits of running a restaurant, considering its place in the perfect competition?
Using the ideas we discuss this week, we are able to make clear statements on when a firm should operate and when it should shut down. When is it sensible for a firm to shut-down? What actions might a firm take to stay in operation in the long-run? D..
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