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Suppose that two people, Michelle and James each live alone in an isolated region. They each have the same resources available, and they grow potatoes and raise chickens. If Michelle devotes all her resources to growing potatoes, she can raise 200 pounds of potatoes per year. If she devotes all her resources to raising chickens, she can raise 50 chickens per year. (If she apportions some resources to each, then she can produce any linear combination of chickens and potatoes that lies between those extreme points. If James devotes all his resources to growing potatoes, he can raise 80 pounds of potatoes per year. If he devotes all his resources to raising chickens, he can raise 40 chickens per year
Suppose you are provided with the following production relationships, where the input is fertilizer (pounds per acre) and the output is rice (cwt per acre). Using graph paper, please graph AVP, MVP, and MFC
Discuss the appropriate discretionary fiscal policy that the government should adopt, given the above situation.
Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees In many smaller cities all McDonald's outlets are owned by the same franchisee. Why is (or isn't) this fac..
A local market for three bedroom rental units is depicted by the following demand and supply equations;
Describe the economic situations when your position can be successfully implemented and when it may be doomed to failure.
Movie theaters generally charge the same ticket price for all movies with evening show times, regardless of popularity. This pricing strategy causes surpluses for unpopular films & shortages for popular films.
The equilibrium price for physiotherapy visits is $30 and the quantity utilized is 150 visits as a result of the demand and supply conditions in this diagram. The state legislature is concerned that the current price does not give the physiotherap..
Using Keynesian model and Classical model, analyzed the effect of balanced budget (when the government increases the government expenditure and tax by the same amount not to affect the government deficit) on output (Y), interest rate (r) and price ..
A good which if supplied to one person is supplied to all and whose consumption by one individual does not prevent its consumption by another individual is known as: a private good. a public good. an external good. an internal good.
If salary in the private organization are set equal to the value of the marginal product, how much will they rise yearly.
Assume Venezuela imports TV sets at a price of $150 each. Under free trade, how many sets does Venezuela produce, consume, and import.
Assume that two individuals have the similar tastes and the same initial endowments. What can you say about the efficiency of the allocation.
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