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You have been appointed "Global Manager" of a firm that has two plants, one in the United States and one in Mexico. Assume you cannot change the size of the plants or the amount of capital equipment. The wage in Mexico is $5. The wage in the U.S. is $20. Given current employment, the marginal product of the last worker in Mexico is 100, and the marginal product of the last worker in the U.S. is 500.
Illustrate the total price of production (including the cost due to environmental damage) at the unregulated equilibrium quantity of 400.
Tangents as a trigonometric function will be applied in our conversion of the Consumption Function in the Macro section of this course.
Suppose now that the government reduces (t) and increases (t') so that the government budget constraint continues to hold. What will be the effects on an individual con-sumer's consumptionin present
If the Bank of Canada sells 100 million worth of bonds to the public in an open market operation. What level of output will the firm choose? Is the firm making a profit.
Consider that, in this case, we 1st add (marginal) costs, not quantities, since these are the costs associated with each t-shirt.
Discuss the point price elasticity of demand for Tweetie Sweeties. Discuss the point advertising elasticity of demand.
Explain how high must the deductible be to encourage low-risk behavior
How will the effect on price of an outward shift in demand for labor differ from the effect on price of an equivalent shift in the demand for land.
If the firm's price elasticity of demand is equal to -2 (or 2 in absolute terms) illustrate what price should the firm charge in order to maximize profits
Board of directors has directed you to choose an output level that maximizes the firm's profit. You have an incentive to maximize profits because your job and salary depend on the profit performance of this company.
Provide the information, is it surprising that the company's revenueincreased when it decreased the average selling price of its phones.
Elucidate the marginal revenue from the fourth worker
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