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Question: 1. Is the existence of product differentiation a necessary condition for the existence of intra-industry trade? Why or why not?
2. Is the distinction between "intra-industry trade" and "interindustry trade" a useful distinction? Why or why not?
3. In recent years, U.S. firms have become very concerned about the increasing production of "pirated" and "counterfeit" goods abroad, especially in Asia. Successful U.S. export products are copied by foreign producers without payment of royalties and/or adherence to patent or copyright protection. How might this phenomenon affect the product cycle and new product research and development in the United States?
Aside from the value of a normal social life, what is the annual opportunity cost, expressed in dollars, to this rower of "Going for Gold"?
What does this do to the marginal cost curve at Galt Inc.? Does it rise, does it fall, or is there no change? Illustrate your answer in the figure.
What is the optimal degree of air cleanliness? What is the optimal degree of air pollution? Suppose that a state provides subsidies for a company to build plants that contribute to air pollution. Cleaning up this pollution causes the marginal cost of..
the problem of public-sector employee performanceit is generally recognized that one of the core problems of
Suppose that college students in your town persuaded the town council to enact a law setting the maximum price for rental housing at $200 per month.
Suppose that producers need to have licenses to sell apples, and that only 90 units of apples are licensed (i.e. Q is limited to 90). Calculate the sum of the consumer surplus and producer surplus.
A high-quality filter for tap water and a reusable drinking container cost $75 and typically will last for three years. If a family drinks an average of eight.
Explain the significance of giveback, two-tier wage system, glass ceiling, set-aside contract, minimum wage, current dollars, real or constant dollars.
Suppose that Shan On has received a contract to maintain an additional 1000 elevators. Does the example in (a) illustrate economies of scale or scope?
Would the conclusion change if the sample had been 124, but with the sample proportion of the ?rms meeting the pollution standards the same as before?
What are two arguments against productivity growth as an explanation of the large U.S. current account deficits.
A newspaper article once reported that the U.S. economy was experiencing a low rate of inflation. It said that "low inflation has a downside.
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