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Discuss the impact on wages, employment in the industry, and the economic welfare of the following input market structures. In which case will the deadweight loss be the smallest?
a. A labour union that controls the supply of workers to an industry consisting of many small firms
b. An output market monopolist who is the only employer of a particular type of labour
c. An output market monopolist who is the only employer of a particular type of labour supplied by a union that controls the entire supply of workers to the industry
Discuss the feasibility of lower middle or low income countries resorting to fiscal stimulus to stave off recessions in their own economies. You can use one or more countries as examples.
Engineers at national research laboratory built a prototype automobile which could be driven 180 miles on single gallon of unleaded gasoline. They estimated that in the mass production the care would cost 40k for each unit to build.
Draw the demand curve for the bridge crossings. How many people would cross the bridge when there were no toll? What is the loss of consumer surplus associated with charge of toll of $4.00
Essay on Market imperfection associated with negative externalities.
A Monopolist is deciding how to allocate output between two markets. The two markets are separated geographically. Demand and marginal revenue for the two markets are given by:
Say if the following statement is true or false and why-Exports depend only on the demand of foreign countries for our products and therefore our exporting
Compute the producer surplus from parts a and b. Are producers better or worse off as a result of international trade? Discuss why.
What are the advantages of Fed increasing interest rates if the GDP gap is positive?
Your company is considering expanding overseas. It is particulary interested in developing markets, and narrowed its choice down to two countries, A and B.
In each of the cases listed below determine what this consumer needs to do (in terms of purchasing X and Y) to maximizes their utility.
For the product shown, assume that the minimum point of each firm's average variable cost curve is at $2. Construct a demand and supply diagram for the product and indicate the equilibrium price and quantity.
What are those key objectives and what are the key tools the Fed plans to use to achieve those objectives?
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