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Show that factor prices will be unequal if the technologies in the two countries differ. How are gains from trade distributed when endowments are heterogeneous?
Discuss the manner in which an analyst would compare the relative profitability of the two potato chip segments.
Suppose a monopolist faces the demand and cost curves shown in the figure below. The monopolist maximizes profit (minimizes loss) by producing __________ units of output. The monopolist will sell its output at a price of $__________ per unit.
Trace out exactly where this 100 increase in income goes in the second round and compare to our simpler treatment with a closed economy and lump sum taxes.
What is a market failure? It refers to a breakdown in a market economy because of widespread corruption in government.
The following estimates have been obtained for the market demand for cereal In Q= 9.01- 0.68 In P+0.75In A-1.3M, where Q is the quantity of cereal, P is the price of cereal, A is the level of advertising and M is income.
Show that for measurable f, ess sup f = sup f. Show that these quantities coincide when f is continuous.
The Milwaukee Brewers are playing their archrival the Chicago Cubs. Bleacher tickets for the game were sold out and many fans would have attended if tickets were available. Did the Brewers use the optimum pricing policy? Explain. If not, explain. Wha..
If investors in Europe lose confidence in Turkey’s leadership and decide to pull assets out of Turkey, what will this do to the exchange rate between the Euro and the Turkish Lira? Explain and illustrate with supply-demand graph(s). Be as specific an..
The CEO of General Motors is worried that members of the GM's strategic planning committee are unfamiliar with basic economic principles.
Katherine advertises to sell cookies for $4 a dozen. She sells 50 dozen, and decides that she can charge more. She raises the price to $6 a dozen and sells 40 dozen. What is the elasticity of demand? Assuming that the elasticity of demand is constant..
When an increase in aggregate demand exceeds the increase in aggregate supply,
Using the midpoint method, calculate and interpret the price elasticity of demand for the following situation: When the price of oranges increases from $1.00 per pound to $1.50 per pound, quantity demanded falls from 500 pounds to 400 pounds. Calcula..
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