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Q1. Explain how does an increase in transport costs change the gains from trade in Melitz's (2003) model? Are the effects of an increase in transport costs qualitatively different from the effects of an increase in the fixed cost of becoming an exporter? Explain.
Q2. Assume a stream is discovered whose water has remarkable healing power? You decide to bottle the liquid and sell it. The market demand is linear and is given as P=30-Q! The marginal cost to produce this drink new drink is 3$. Illustrate cost would this new drink sell for if it sold in a competitive market? Illustrate what is the monopoly cost of this new drink? Q3. Is there a surplus or deficit in the government budget at the equilibrium level of income? Explain how much?
Consider a product market for a normal good. Suppose consumers' income increases. Explain what will happen to labor demand for firms in that market.
Explain how much shelter can she buy if she purchases 2 units of food.
Hardwood Cutters presents seasoned as well split fireplace logs to consumers in Toledo, Ohio. The low-cost provider company is of firewood in market with fixed costs.
Based on the IRS actuarial table, Mario has a life expectancy of 20 years. If Mario receives 12 monthly payments of $1000 the first year, how much taxable income must he report on his tax return.
Estimated regression equation for which quantifies the demand for Widget
How many units of good X will be purchased when Px=4910, determine the inverse demand function for good x.
Suppose that the market price for a bottle of vitamins is $2.50 and that at that price the total market quantity demanded is 75,000,000 bottles.
Analyze the USA financial meltdown that happened in 2008-2009. This crisis was partially caused by the reward systems that were in place for participants in the financial system. Identify the major participants in the financial system.
Numerous times in the lectures labelling the vertical axis as euro per $ and the initial supply and demand curves labelled with 12/07, Label this initial point as point A.
Clarify why you chose this agency as well as what the impacts to you have been. Do you consider the impact to be positive or negative.
An individual likes owning cars is better. In order to own a car, an individual must have a 1:4 ratio of frames to tires.
Eastman Kodak filed for a bankruptcy in January 2012. Using our analytical framework of nine areas of interest introduced in class explain the main causes of the company's misfortunes.
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