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The Micro Islands have traditionally produced large amounts of Starfish and provided a relatively small amount of labor for hotels, docks, etc. that service the cruise ships that visit our island. As economic advisor, you've just learned that five more cruise lines will be visiting Micro Island each week.
1. Using a correctly drawn and labeled production possibilities curve, demonstrate the reallocation of resources that will need to take place for this to work efficiently.
2. Show how the influx of more skilled workers from neighboring islands would be reflected in the production possibilities curve. (Draw a second PPC graph)
3. Finally, show the impact of too many new laborers moving to the islands on a new production possibilities curve.
What has happened to the federal debt since 2008 as measured relative to GDP?
A firm uses 6,000 tonnes of commodity X every year. The fixed transaction costs involved with each order are £80. Each tonne of X held in stock costs £6.
How do the concepts of microeconomics help
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(40%) Bubba Wildcat has the opportunity to buy a tract of land under which he believes there is oil with 0.40 probability and natural gas with .60 probability. After buying the land he can choose to make a test drill for $10,000 to gather more inform..
Unemployment often takes a long time to decrease even after the economy has exited a recession, though it eventually will. There is often a fear, however, that this time the unemployment rate will stay constantly high. Discuss the two sources of u..
Write a critical commentary on the Stern review on climate change from the perspective of African nations. You can use case studies of one or more African nations.
Illustrate with a diagram and explain the short-run perfectively competitive equilibrium for both (i) the individual firm and (ii) the industry
A large electric utility company has proposed building an $820 million combined cycle, gas-powered plant to replace the electric generation capacity at one of its coal-fired facilities. Develop three other alternatives for replacing this electric gen..
Explain the relationship between Cola Magic and Lemon Heaven Soda and explain what affect a 10% increase in the income of the targetmarket would be on the demand for the Cola Magic?
Howard Bowen is a large-scale cotton farmer. The land and machinery he owns has a current market value of $4 million. Bowen owes his local bank $3 million. Last year Bowen sold $5 million worth of cotton. His variable operating costs were $4.5..
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