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Q1. In country A the opportunity cost of a ton of cereal is 100 gallons of beer. In country B the opportunity cost of 100 gallons of beer is 0.95 tons of cereal. Both countries can experience gains from trade if the exchange rate for a ton of cereal is 96 gallons of beer. Why is the answer to this question false?
Q2. A firm incurs production costs C(q) = F + mq, and transportation costs T(q) = aq + bq^2, where q is the output of each of its plants. What is the optimal plant size, and how does it vary with the parameters F, m, a and b?
Show how each of the following would initially affect a bank's assets and liabilities.
Suppose the government increases G to 1250. Compute private saving, public saving, and national saving and the new equilibrium interest rate.
Suppose a consumer is at an optimum, consuming 6 hamburgers a week at a price of $1.50 each and 10 donuts a week at 50 cents a donut.
The price elasticity of demand for Royal Crown Cola is equal to the price elasticity of demand for soft drinks in general It is invalid to make inter product elasticity comparison
The largest loan that the bank can make on the basis of the new deposit. If the bank chooses to hold reserves of $3,000 on the new deposit, what are the excess reserves on the deposit.
Changes in disposable income affect government purchases and the government purchase function. How do changes in net taxes affect the consumption function.
What What marketing strategies should Radiance pursue in the next five years? Explain why the strategies you select would best fit the organization. in the next five years? Explain why the strategies you select would best fit the organization.
Define Mercantilism, Pick a country and talk about the products they import and export with the U.S.A. Also talk about the composition of trade with relation of abundance of the two countries
Electoral College system take a country named know land that has. Suppose there are 9 small states in know land where each have 1 million people in.
An increase in the number of varieties of a good regarded as a gain from trade. Can you think of economic disadvantages associated with greater product variety.
When the bookstore announces a 20% price increase in new texts and a 10% increase in used texts for next year, Guojun's father offers him $80 extra.
Sharp rises in the cost of milk, grain, and fresh fruits and vegetables are hitting cafeterias across the country, forcing cash-strapped schools to raise prices or serve more economical dishes.
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