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Why might a company choose to produce in one low-cost country rather than another?
Now consider what new challenges come from producing in foreign locations. For your new global product/service:
How should wage rates be determined?
What about other parts of a compensation plan such as vacation days and health care packages?
Should companies participate in labor unions?
Suppose you are studying the market for shoes. Two events take place simultaneously. First, price of leather decreases, and second, consumers' income increases. What will happen to the equilibrium price and equilibrium quantity of shoes?
Elucidate how an economist could use the slope of the yield curve to analyze the probability that a recession will occur and why the spread may matter.
Malthusians and Neo-Malthusians believe that, eventually, the population of the earth will be exceeding the number of people able to be sustained by the earth's food production. As such, they advocated different forms of population control. However, ..
Suppose that a monopolist sells a product to consumers with an aggregate demand that is downward sloping in quantity, D(Q) = 200 - 2Q. The total cost of producing Q units is C(Q) = 20Q + 2Q2. What price-quantity pair would we expect? What is deadweig..
A perfectly competitive firm will shut down immediately when the market price falls below
Explain how does global economic competition impact price elasticity in domestic market and decisions related to strategy a firm uses to compete.
Annual demand for rock climbing shoes is Qd = 50,000,000 P-2 a. (1) Prove that the formula above implies a constant elasticity of demand of εp = -2. b. (5) Suppose the industry is competitive, and each firm's total cost of production is TCi = 100 qi...
Professional sports players are generally paid much more than farmers, factory workers, engineers also teachers.
Cara has available h = 3000 hours per year for participating in the labor market and for leisure. She gets a wage w = $18 for the first 2,000 hours of work. If she works more than that, the wage on the additional hours is increased by 50%. She receiv..
Use the following economy for the next 15 questions. Use 2009 as your base year for any calculations where a base year is needed. What is the growth rate of nominal GDP for 2008? What is the inflation rate for 2008? What is the inflation rate for 20..
Panel B shows how the demand for X shifts when the price of related good Y increases from $60 to $68. Use the information in Panel B to calculate the cross-price elasticity. Are goods X and Y substitutes or complements?
Consider an economy in which the amount of investment is equal to the amount of savings (i.e., the economy is closed to international flows of capital).
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