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Trade in Genetically Modified Crops. Suppose the residents of a country become fearful of using genetically modified crops in their food supply. Consider the following two possible scenarios:
a. 1) Aware of consumer sentiment, the largest supermarket chains in the country vow they will not purchase food products that use genetically modified crops.
and
b. 2) The government, aware of voter sentiment during an election year, bans the import of the food products that use genetically modified crops.
In both cases, no genetically modified crops enter the country. Does either of these cases run afoul of WTO policies?
The technology is now expanding so that road use can be priced through computer. A computer in surface of the road picks up a signal from your car and automatically charges you for use of road.
Describe the phenomenon of market foreclosure. Specifically, describe how a vertical merger may "substantially lessen competition or tend to create a monopoly" through virtue of market foreclosure.
Draw a diagram showing how the market equilibrium will change if the marginal social costs of a polluting production activity are included rather than just the marginal private costs of that activity.
Suppose that the rate of depreciation as well as the rate of saving are each .10. Also assume that there is no technological nor population growth.
Airlines practice price discrimination by charging leisure travelers and business travelers different prices. Different customers pay varying prices for essentially the same coach seat because some passengers qualify for discounts and others do no..
Compute the marginal profit function and what is the profit maximizing price, what is the market demand function and what is each firm's supply function?
You have been employed to manage a small manufacturing facility which has cost and production data given in the table listed below.
If the Federal Reserve buys a $10,000 government bond from an individualin the economy, what is the initial effect on the money supply? What is the ultimate effect on the money supply?
In calculating the incremental cost of a particular project, how would you treat the possible future costs of a lawsuit that may occur as a result of this project, where the cost of the lawsuit might range from $10,000 to $500,000 with an associat..
What is the nominal exchange rate in 2013? What is the expected nominal exchange rate for next year? Which currency will appreciate? What is the real exchange rate in 2013? What is the economic meaning of the real exchange rate?
Suppose that due to a new government study, consumer preferences for chicken suddenly increase. In the model of consumer theory, this would be represented by, During the 1990s, some countries lifted price ceiling on eggs.
Plot the marginal revenue and marginal cost curves and is the industry the firm operates in competitive? Is the industry in long-run equilibrium?
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