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Let us consider the framework we have presented in class to study inter- temporal choices and assume that saver's income,m, can be decomposed into the sum of capital (k) and labour (I) incomes. Considering there is no inflation, model the inter-temporal budget constraint and draw its graph. What are the values of both intercepts? If capital income increases in period 2, and the interest rate remains the same, what happens to the budget line? Let us now express capital income as the product between wealth and the interest rate. Derive the new budget line. Is the slope of the budget line affected by this?
Explain the relationship between the law of diminishing returns and the concept of economies of scale.Explain with the use of diagrams where appropriate how perfect competition leads to allocative productive and dynamic efficiency.
How many fields should Henry and Sons plant this spring to maximize profits, and what determines and should they try to get a price higher than $40 per ton to improve profits? Why, or why not - Explain what the supply and demand curves indicate to th..
china has a total of 4.9 trillion gdp in 2009. if current trends continue china may be the worlds largest economy by
The city of Seattle limits each household to one can of free garbage collection per week. There are fees for any extra garbage collected from the curb.
Evaluate the prediction of absolute convergence in GDP per person. Does it hold when using this data. Make sure you explain your method and include.
What products/services are involved and what is the timing of entry? The possible risks and benefits associated with the strategy.
Suppose the market demand function (expressed in dollars) for a normal product is P=80-q, and the marginal cost (in dollars) of producing it is MC=1q, where P is the price of the product and q is the quantity demanded and/or supplied.
Completion of import documents needed for entry into the U.S. to include the tariff classification number and impacted duty rates or fees Potential dumping issues (i.e. predatory pricing with knockoff products: when manufacturers export a product ..
Treating the marginal cost curve as the “supply curve” and using the given demand curve,what price and quantity would a competitive market give?
Determine the firms profit-maximizing level of output. Compute its profit - Find the market's price, total output, number of firms, and output per firm
From 1992 to 1997, the unemployment rate in the US declined from 7.5% to 4.9%, while at the same time it rose from 8% to over 12% in continental western Europe.
The Sandwich Co., whose earnings put it in the 46% combined state and federal tax bracket, is considering purchasing a piece of food-handling equipment.
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