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Q1. Illustrate what is the meaning of economies of scope and explain how do they differ from economies of scale?
Illustrate what do learning curves and explain how do they differ from economies of scale?
Illustrate what is the usefulness of learning curves as a managerial tool? Illustrate what is the reason for rising international trade in inputs and the use of foreign skilled labor?
Q2. The country of Aquilonia has a tax system identical to which of Canada. Assume someone in Aquilonia bought a parcel of land for $20 000 in 1960 when the cost index equaled 100. In 2002, the person sold the land for $100 000, and the cost index which is equal to 600. If the person must pay 20 percent of any capital gain in what is the after-tax real capital gain (in 2002 dollars) on the land?
What is the social optimum quantity and price. Calculate the total surplus in the market equilibrium, at the social optimum and with the tax.
What kinds of people are most likely to have their utility reduced by such a law. Why do you think that the government requires such insurance.
Use indifference curves to distinguish between income and substitution effects, using the above techniques explain why the demand curve slope downwards, What are the main criteria for designing a tax system, To what extent do you think the national..
Elucidate is the efficient yearly output of paper and how can this be achieved.
Compare the consumption levels of workers in both countries. Explains the diversity between the countries.
Assuming that under cost controls rationing is as inefficient as possible while under the quota, the allocation is as inefficient as possible.
The benefit of cutting down a forest is $1 million now. the environmental cost of that harvest is $10/year forever.
Compute the price elasticity of demand for TV Plasmas. Explain how could we classify the demand for TV Plasmas.
The average consumer income is $20,000, and the price of the related good is $1.10. Compute the predicted quantity demanded of X at these prices and income.
If a random sample of 400 clients is elected, what is the probability of Type I error using this decision rule.
What is the cross elasticity of demand for pipes and pipe tobacco.
Illustrate what will be the most likely new equilibrium price level and output.
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