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Do multinational corporations (that operate in several countries) distort the "trade surplus/trade deficit" figures for the U.S. given that a portion of trade is intra-firm in nature? Explain why or why not.
Why would the government bypass the free market in times of war? Is government rationing a better idea than rationing by price? Give reasons. How does government rationing affect the allocation of resources? Explain.
Consumer and investor optimism and pessimism matter a great deal in the economy. Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country.
where P represents price and A is the number of weekly advertisements. Presently the theater advertises 125 times per week. Assuming this is the only theater in town, and its marginal cost, MC, is equal to zero,
In the debate concerning repeal of the provision allowing capital gains on assets passed on to one’s heirs to escape taxation, some have reasoned that death is not voluntary, and therefore one should not tax capital gains upon death. Evaluate and exp..
Consider the market for picture frames. a. If the market has a very elastic demand curve and inelastic supply curve, how would the application of a subsidy be shared between producers and consumers? Use the tools of consumer surplus and producer surp..
What are five challenges China’s economy faces as its leadership tries to change the source of growth from exports and public investment to consumption? Why might a slowdown in China’s economy not pose serious problems for the U.S. economy?
q.assume that over the short run say the next five years demand for opec oil is given by q 57.5 -.5p or equivalently p
Explain the problems of “cannibalization” and “arbitrage” in the context of price discrimination and discuss how they can be avoided. Provide two examples of each problem (and possible solutions) from the publishing industry.
The recent merger of US Air with American Airlines received both national and local attention. The U.S. Department of Justice contested the merger on the basis that it would produce harmful monopoly-like behavior in many airline markets. Develop an a..
Privatization can be defined as "the process of returning to the private sector property or functions previously owned or performed by government". The basic idea is that there may be some services that the government is providing right now that the ..
You are moving aluminum from the mill to to 2 different markets. Measure for the 2 mills are measured as: Qa=10,000-40Pa and Qb=8000 - 60Pb, Qa=quantity in market A, Qb=quantity in market B. P= price charged, Assume marginal cost=$75 per unit a. What..
ABC Company purchases a machine for $40,000, keeps it for six years and sells it for $5,000. During the time the machine was used by the company, O&M cost totaled $5,000 the first year, $6,000 the second year, $8,000 the third year, $9,500 the fourth..
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