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One July, the United States sold aircraft worth $1 billion to China and bought aircraft worth only $19,000 from China. During the same month, however, the United States bought $83 million worth of men's trousers, slacks and jeans from China but sold only $8,000 worth of trousers, slacks, and jeans to China. Using what you have learned about how trade is determined by comparative advantage, answer the following questions.
A. Which country has the comparative advantage in aircraft production? In production of trousers, slacks, and jeans?
B. Can you determine which country has the absolute advantage in aircraft production? In production of trousers, slacks, and jeans?
If a coal power plant considers the costs of labor and materials, as well as the broader costs of environmental injuries resulting from its power production processes then Its?
What happens to price and output in the Cournot, Bertrand, and Stackelberg models if marginal costs increase by 10 percent? The market demand is p = a-bQ and the marginal cost is constant across firms, i.e. mc1 = mc2 = c. You may consider for two fir..
Explain the difference between adverse selections also moral hazard in insurance marketplaces.
How many books should Barnes & Noble order? What is their expected profit? How many books do they expect to sell at a discount?
You are the manager of a firm that receives revenues of $40,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Y and X is..
the net profit earned in business rs 60000 but the net sales occurred during the year are rs. 300000.compute the net
q1. a consumer must pay 10 per visit to an amusement park for the first five visits but only 5 per visit beyond five
Consider that, in this case, we 1st add (marginal) costs, not quantities, since these are the costs associated with each t-shirt.
If a country wants to fix its exchange rate at a rate that is higher than the market rate, what monetary or fiscal policy must it use? If a country wants to fix its exchange rate at a rate that is higher than the market rate, what monetary or fiscal ..
q.given the demand function of a monopolistq 100 - pand the cost function faces himherc 100 80 qa. find out
Thoreau has preferences for consumption goods (C) and time spent on leisure (L). The utility function is u(C, L) = CL. The household also has a home production technology summarized by a production function. Now suppose that there is a competitive fi..
Discuss income elasticity as it pertains to inferior goods and to normal goods (sometimes also called superior goods).
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