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Explain how import quotas combined with allowing foreign direct investment are likely to be easier to justify as a politician than fully free markets.
Suppose the employees of Starbucks in China are paid 8 yuan per hour and a cup of coffee is priced at 8 yuan. If Starbucks is maximising its profit, What is the value of marginal product of labour (VMPL) per hour of the last worker employed by Starbu..
The law of diminishing marginal utility (LODMU) states that:
Why does somebody investing for retirement use a stock mutual fund? What are they attempting to gain?
Inducing the worker to exert effort A worker can exert two effort levels, good or bad which induce a production error with probability 1/4 and 3/4 respectively. Calculate the optimal contract and the effort that the principal desires under conditions..
Research shows that much more money is spent on medical care for the elderly today than 50 years ago. What is the likely reason? Do today’s elderly tend to be sicker and more likely to be disabled than in prior years?
A typical family in an island economy consumes only orange, mango, and cloth. The base period is year 1. Prices in the base period are $2 per pound for orange, $3 per pound for mango, and $5 per pound for cloth. Calculate the economy's Consumer Price..
We’ve seen that monopolistically competitive firms will try to differentiate their products in order to eliminate substitutes. Are there comparable measures that can be taken in labor markets to decrease the number of “substitutes” for some types of ..
A unique aspect of a market economy is that consumers and firms change their behavior largely in response to:
Demonstrate in a graph that if the production technology is of fixed proportion type (L- shaped isoquants), an increase in wage rate will cause only a scale effect on labor demand and no substitution effect. will there be any difference between short..
Your shopping choices are limited to Old Navy,The Gap or Banana Republic. How do you spend your money and why?
Find the amount of consumer surplus for a linear demand p= 20-2x for p=0 and p= 10. What is the maximum and minimum amount of CS a consumer can have for this demand and what are the prices? What is the inverse demand function for good x with the foll..
If the cross-price elasticity between ketchup and hamburgers is −1.5, a 2 percent decrease in the price of ketchup will lead to a:
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