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A central market for a competitive industry is supplied by firms working in two different locally governed areas (A and B). The distance between them and the centre is the same. The local government in province A proposes to improve the lot of its public by offering a special bonus to all producers in their area.
(a) Describe the initial set-up of the market;
(b) Analyse the effects of the local policy on the market in the short-run;
(c) Assuming that for cultural reasons there is barely any labour mobility across provinces, what would happen to equilibrium price and quantity, the number of firms in each region and the level of each firm's output? Will the government improve the lot of its public?
Shall Hong Kong introduce sales Tax - What will be the effect of general sales tax on Hong Kong financial market and economy
what are the highest and lowest payments from the writer that the beekeeper- farmer team will accept for the sixth day Assuming that the farmer can dispose of $7 from the writer as she wishes, what range of payments will the beekeeper accept
As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant, answer the following What two policies could you use to reduce the total amount of emissions
Max Whitley, manager of Whitley Construction, builds new homes in a booming community in the Midwest. Although the sales have slowed down because of a national recession, it now looks as if the recession is about to end. Max wants to be ready with..
Using the regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen, microwavable food company operates.
Assume that the yearly personal income per capita is in the US is $39,000 in 2008, the price of gasoline is $4.00 per gallon, and the consumption of gasoline per capita is 450 gallons.
Each organization manager's performance was evaluated yearly in relation to the specified multiple goals.
Analyze The Virginia Plan and break down each paragraph to understand the main idea. Write a persuasive essay in which you defend the following claim: The Virginia Plan gave too much power to the national government.
Illustrate and explain the interaction of households, businesses, government and global markets in the circular flow of economic activity.
Discuss the difference among inflationary gap also deflationary gap.
1.Let X and Y be independent N(0, 1) random variables, and define a new random variable Z by Z =X if XY > 0 -X if XY
Research the direction of monetary policy over the last 3-5 years. Has the money supply increased or decreased? Explain. Have interest rates increased or decreased? Explain.
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