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Suppose ABC Inc., a U.S. auto manufacturer, obtains all of its auto components in the United States and that its costs are denominated in dollars. Assume the dollar's exchange value appreciates by 50 percent against the Mexican peso. What impact does the dollar appreciation have on the firm's international competitiveness? What about dollar depreciation?
Solve for aggregate expenditures (AE) as a function of Y, and compute the equilibrium level of national income. Elucidate your equilibrium in a diagram with AE.
If a firm is producing where MPx/Wx > MPy/Wy, where x and y are the two inputs to theproduction process, what can the firm do to reduce costs but maintain the same output? Explainyour answer both intuitively and graphically.
Suppose a firm sells a good in 2 markets, each market is characterized by their own respective demand curve. Calculate the profit maximizing outputs and prices in each market assuming the firm can price discriminate. Calculate the own price elasticit..
how do shifts in provide also demand influence price, quantity also marketplace equilibrium of toilet paper.
At the peak of the financial crisis, you had lost 40% of your stock holdings, leaving you with stocks with $10,000. You asked your family for advice on what to do with your money. If you decided to follow your mother’s advice, what is the opportunity..
Why is the private market for public goods typically characterized by under provision. Under what situations will we expect the private market to overcome this problem?
Sandy is planning her consumption over five periods during which she expects her income to be 4, 10, 16, 12 and 8. What is Sandy's permanent income? What is Sandy's marginal propensity to consume out of a temporary increase that boosts first period i..
Please post an article about why the oil prices decreased in the last couple of years. You should write a short paragraph explaining what you found interesting in the article using tools from microeconomics such as supply, demand, elasticity, oligopo..
If one compares the contemporary U.S. economy with those of Germany and France, it is reasonable to conclude that
Explain how a subsidy on agricultural goods like sugar adversely affects the income of foreign producers of imported sugar. Explain how trade barriers save jobs in protected industries, but only by costing jobs in other industries.
what are the various formes of dispute resolution available to your company? what are the advantages and the disadvantages of each for your company?
Illustrate what change in the economic enviJorgement led to this new equilibrium.
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