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-Using the MES framework, show how a decrease in the demand for jeans will impact demand for workers who produce blue jeans. Hint: First think about how the change in demand for jeans will affect equilibrium prices of jeans.
-Suppose I own a car company that uses both people and robots to produce cars. Recently, the cost of robots increased substantially. Using the MES framework, explain how the increased cost of robots will affect the number of people I hire.
The U-shape of the average variable, average total, and marginal cost curves reflects
Find a firm that you believe has achieved economies of scale in recent years. Given the determinants of economies of scale (labor specialization, managerial specialization, efficient capital, etc.), which determinant do you believe is most responsibl..
Assume that two firms sell differentiated products and face the following demand curves: = 15 − + 0.5 and = 15 − + 0.5 (Assume that the marginal cost is zero) Derive the best response function for each firm. Do these indicate that prices are strategi..
You are the manager of BlackSpot Computers, which competes directly with Condensed Computers to sell high-powered computers to businesses. From the two businesses’ perspectives, the two products are indistinguishable. How much will this process impro..
As an owner of a visible U.S. business that is valued in the community, you are making a final decision regarding the international aspects of a business decision, and you decide to set up a table with various risks.
q1. like supermarkets full-service department stores like macys are generally in decline. what factors might these
The AMA has often been thought to behave like a trade union in restricting the supply of physicians in order to keep earnings high. What evidence is there that the AMA has acted this way? Essential of Health Economics Second Edition Diane M. Dewar
Prepare a statement for your board as to the potential impact of profits. Who will pay the the larger share of the tariff, your firm or your customers.
If the required reserve ratio were .25, then a $8 million increase in H ("high-powered money") from the Fed could lead to an increase in the money supply by as much as $____ million.
solve for consumer surplus, producer surplus, government revenue, and total surplus with the tax. solve for the change in consumer surplus, the change in producer surplus, the change in government revenue, and change in total surplus.
Consider a European call option priced at $15 with a strike of $35 and a time to maturity of 1 year. The current stock price is $40 and the risk free rate is 5% p.a.. An otherwise equivalent European put is priced at $5. Outline an appropriate arbitr..
The average cost of production _______ if there are scale economies, and ________ if there are scale diseconomies.
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