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Suppose you are the manager of the only firm worldwide that specializes in exporting fish products to Japan. Your firm competes against a handful of Japanese firms that enjoy a significant first-mover advantage. Recently, one of your Japanese customers has called to inform you that the Japanese legislature is considering imposing a quota that would reduce the number of pounds of fish products you are permitted to ship to Japan each year. Your first instinct is to call the trade representative of your country to lobby against the import quota. Is following through with your first instinct necessarily the best decision? Explain.
Imagine that the firm must choose one of three quality levels: z = 1; z=2; and z = 3. Which quality choice will maximize the firm's profit?
Use the following data for a firm's output at various levels of employment to calculate: (a) its marginal physical product of labour (MPPL) schedule.
Explain how does the Leontief paradox challenge the overall applicability of the factor-endowment model.
Provide a report to management of the firm as to whether or not it should continue to operate at a loss?
Describe the economic situations when your position can be successfully implemented and when it may be doomed to failure.
Give an example of a positive externality and of a negative externality. How does an externality affect the market outcome.
Find out the optimal weekly output and price of this firm. Find out the weekly profit from the production and sale of this product.
What is real mortgage interest rate in 2001, 2002, 2003 and 2004? What are the values in 2000 dollars of the Nancy's monthly mortgage payments in the year of 2001, 2002, 2003, and 2004?
Using the exchange rates and prices in the tables above:
How is interest rate described? Why is there a lower present value of goods to be delivered in future? What are their respective interest rates? Illustrate the adjustments which you think will ensue.
A recent report indicatesthat nearly 50 Americans contract HIV every year through blood transfusions. Although every pint of blood donated in the United States undergoes a battery of 9-different tests,
Describe how a change in investment can have big impact on GDP causing a nationwide slump. Recall that investment is "small" relative to the entire economy.
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