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Q. A can of soda costs $0.75 in the United States and 12 pesos in Mexico. What would the' peso- dollar exchange rate be if purchasing-power parity holds? If a monetary expansion caused all prices in Mexico to double, so that soda rose to. 24 pesos, what would happen to the peso-dollar exchange rate
Q. 4 economic participants -- Consumer, Business, Government and Foreign Sector? Could you describe how these participants contribute to the GDP [Gross Domestic Product] and to the economic growth? How can the economy bounce back quickly from the recession? As we begin fleshing out the Wheel of Income and the National Income Accounting 'snapshots,' we need to understand how consumers and businesses behave and why. Explain how do these two relate to each other in the Circular Flow Economy and to the Government and Foreign Sector components? How does all this fit on a Wheel of Income?
Suppose the firms compete in quantities. If firm 1 deviates from collusion in one period, what is the profit of firm 1 in that period in subsequent periods.
Law of demand does not hold since attendance at the major league parks has dropped while at the same time ticket prices have fallen.
Analyze how a bartender would know which the price of an exotic drink was too low or too high. Provide adequate conceptual justifications.
Madelyn owns a small pottery factory. She can make 1,000 pieces of pottery every year also sell them.
The law in Ruba says no worker shall be paid less than nine slugs per hour.
Conclude how the abatement levels should be reallocated across the 2 industries to minimize costs.
Kramer Smith owns a dry-cleaning service also is thinking about changing his advertising expenditures for the year.
Do you think the industry environment is significantly dissimilar today.
Assume to the firms act independently as in the Cournot model. Determine the long run equilibrium output also selling price for each firm.
Elucidate the value of a trucker's life disguised by compensating discrepancy among the two firms.
In Illustrate what way are entrepreneurs also businesses at the helm of the economy but commanded by consumers?
Assume that the firms form a cartel to maximize total industry profits. Determine the optimum output as well as selling cost for each firm.
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