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Evaluate the relative importance of economies of scale and comparative advantage in causing the following:
a. Most of the world's aluminum is smelted in Norway or Canada.
b. Half of the world's large jet aircraft are assembled in Seattle.
c. Most semiconductors are manufactured in either the United States or Japan.
d. Most Scotch whiskey comes from Scotland.
e. Much of the world's best wine comes from France.
QD = 140,000- 25,000P QS = 20,000 + 75,000P, where Q = daily sales in 6 packs of beer, and P = price per 6 pack. The city has hired you to provide the following information regarding the beer market and the proposed tax.
For both sets of calculations, compare the firm's output price and the calculated average variable cost and average total cost. Should the firm shutdown immediately when the total fixed cost equals $1,000,000
What has happened to the volatility of interest rates since 1982? Does your answer change if your measure of the interest rate is the ten-year government bond rate?
Compare the performance of the two bonds in the two scenarios, one involving an increase in rates, the other a decrease. Based on the comparative investment performance, explain the attraction of convexity.
jack owns an auto repair shop, specializing in European cars. With three full-time mechanics, Jack's shop repairs/services 15 cars per week. Each worker is paid $500 per week. By hiring another mechanic, at the same salary, he can increase his wee..
A study by Hewitt Associates showed that 79% of companies offer employees flexible scheduling. Suppose a researcher believes that in accounting firms this figure is lower. The researcher randomly selects 415 accounting firms and determines that..
Assume your research staff used regression analysis to estimate the industry demand curve for Product X. Where Qx is the quantity demanded of Product X, Px is the price of X, Y is income, and r is the prime interest rate
If the countries split the market evenly, what would be SouthAfrica's production and profit What would happen to South Africa's profitif it increased its production by 1,000 while Russia sticks to the cartelagreement
What price will the monopolist charge for his output?
Suppose the inverse market demand is given by P = 20 - Q. If the incumbent produces 8 units of output, which of the following equations best summarizes the potential entrant's residual demand curve P = 12 - 8Q P = 20 - 12Q P =20 - 8 Q P = 12 - Q
Sue consumes only two goods, food and clothing. The marginal utility of the last dollar she spends on food is 12, and the marginal utility of the last dollar she spends on clothing is 9. The price of food is $1.20/unit, and the price of clothing is..
Explain the difference between the overall government budget deficit, the current deficit, and the primary current deficit. Why are three deficit concepts needed?
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