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Suppose that εD = 0.667 and εFD = 0.75 for given country:
a) Are import demands elastic or inelastic in this case?
b) Does the Marshall-Lerner condition hold? How do you know?
c) Suppose that domestic price of this country's imports rise by 10% following a devaluation. What will happen to the quantity that it imports?
Suppose two firms sell an homogeneous product; they compete in prices. Their respective marginal costs are MC1 (q) = 10 and MC2 (q) = 20. Find the prices that form equilibrium (for simplicity and reality, assume that prices are quoted in units no sma..
Explain how much profit will the perfectly competitive firms earn. Explain how much profit will the monopoly firm earn.
To increase tax revenue, the US government in 1932 imposed a two-cent tax on checks written on deposits in bank accounts. Use the model of the money supply under fractional-reserve banking to discuss how this tac affected the money supply.
The single price monopoly faces a demand curve of p=90-Q and a constant marginal (and average) cost of m=$30. Find the profit maximizing quantity (or price) using math. Determine the profit, consumer surplus, welfare, and deadweight loss.
How can you apply job analysis methods to your organization and what kind of HR programs can benefit from these methods?
In "In Praise of Big Brother" (pp. 203-215), James Stacey Taylor argues for the optimistic conclusion that, with the right legal and procedural safeguards, large-scale governance surveillance would have many positive consequences. What are Taylor's b..
Say y store it as cash in a mayonnaise jar in kitchen cabinet. What would this do to circular flow of income and spending. How would businesses react to household hoarding.
Why would secrecy in operating a business be important to an owner? What form of organization would be most appropriate for a business requiring great secrecy?
If the economy is currently producing 40 units of cotton and 6 units of wheat, then what is the approximate opportunity cost of producing 10 more units of cotton?
Why is it complicated to determine the Pareto superiority of how incentives are allocated? 3 sentences please
Create a 12 page argumentative/persuasive research essay for OR against a business decision OR an organizational plan OR business philosophy
Supporters of accelerated depreciation in 1981 acknowledged that it favored heavy industry ("smokestack America") but argued that this was desirable. Why do economist tend to look askance at such arguments? Can you identify any major market failures?..
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