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The goal of any firm is to maximise profit, discuss the two (2) rules of profit maximisation for a firm?
Explain the fundamental notion of a variable (data item) x being informative about a variable y.
In a fixed exchange rate system, how do countries address the problem of currency market pressures that threaten to lower or raise the value of their currency?
Draw two markets, one for skilled workers and one for unskilled workers. If the number of unskilled is rising due to immigrotion (both legal and illegal) and this demand for skilled workers is rising, what occurs in the two markets?
An artist makes a beautiful instrument that becomes famous throughout the country. A number of claimants arise, each of whom argues that they deserve the flute: the artist who created it, the most talented musician, the poorest musician, the neediest..
Given the following MV information, what is the optimal allocation of care according to the Paretean criteria, when the marginal cost of care is constant at $100? Person A Person B Quantity of Care Consumed MV Quantity
Examine an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions. (Southwest Airlines)
Bessimer Electronics manufactures addressable actuators in one of its Maquiladora plants in Mexico. The company believes that by investing $24,000 each year in years 1, 2, and 3, it will avoid spending $87,360 in year 3. If the company does make the ..
Q1: suppose that changing climate conditions lead to greater wear and tear on the nations capital stock, meaning an increase in the depreciation rate of capital. Which of the following is steady-state for this economy?
At the end of year 6, it will be donated to Metro U's School of Engineering. The donation will save $2000 in taxes. Draw the cash flow diagram.
If one spouse puts the other spouse through medical school by working and by delaying his own formal education
Which country has comparative advantage in the production of Cell Phones? Which country has comparative advantage in the production on Computers? Explain. If transportation costs are ignored and trade is allowed, will China and Germany engage in trad..
The terms of the loan are not renegotiated, so the borrower has a guaranteed nominal interest rate of 10%. What is the expected real interest rate for this loan?
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