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On April 1, 2009, in the middle of a recession, the government of the province of Ontario, Canada increased the provincial minimum wage from $8.75 to $9.50. What will the likely effect of this policy be?
Suppose Sam and Kevin can produce pens and pencils as shown in the table below. Pens Pencils Sam 12 hours 8 hours Kevin 4 hours 6 hours Who has a comparative advantage in producing pens? Who has a comparative advantage in producing pencils?
The industry is currently at a long-run equilibrium, with each firm producing at its minimum long run average total cost of $8.
Mitchell's income is $150, the price of X is $4, and the price of Y is $2. Given these prices and income, Mitchell buys 20 units of X and 35 units of Y. Call this combination of X and Y bundle J. At bundle J, Mitchell's MRS is 1. Given these prices a..
How much is a college education worth? In the text, we supposed a col- lege education raised a person’s wage by $30,000 per year, from $40,000 to $70,000. Assume the interest rate is 3% and there is no growth in wages, then answer the following. Disc..
Net revenues will begin at $300,000 for the first 2 years and then decline at $50,000 per year. Super Tool will terminate sales when net revenues decline
Suppose the market for lemonade is a competitive market. The prevailing market price is $10. A typical seller in the market has a cost function of: C = q3 - 6q2 + l0q + 100. Find its profit-maximizing output level. Calculate her profit. What is the l..
What would be a more appropriate revenue based strategy for Coles and Woolworths to undertake in regards to pricing? What type of market structure is the market for vegetables in which farmers who supply the supermarkets operate
In principle, the benefits of international trade to a country exceed the costs, no matter?whether the country is importing or exporting.
Using the regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen
Do you expect that many ?rms will enter this market in the long run? Why or why not?
Why is this the case and how does it relate to the marginal product of labor (MPL) in each sector and the production possibilities frontier (PPF)?
What is the cross price elasticity with respect to good x? What does the sign of the coefficient tell us? Interpret your results.
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