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Countries A and B have two factors of production, capital and labor, with which they produce two goods, X and Y. Technology is the same in the two countries. X is capital- intensive; A is capital-abundant. Analyze the effects on the terms of trade and on the two countries’ welfare of the following (hint: use standard trade model): a. Country A experience biased growth toward good X. b. Country A impose tariff to the imports.
Suppose that a computer software company controls the operating system market. Although the government knows that the price is higher than it would be in the presence of competition, it believes that such profits are crucial to incentivizing innovati..
The Internet provides a wonderful opportunity for doing marketing research and learning about various consumer markets. You are to prepare a report on the size, location, purchasing power, and market potential for the 3 largest minority target market..
Explain briefly why TOTAL profit (profit from entire sales) is still likely to be lower with this pricing scheme than with perfect price discrimination, despite charging a fixed fee equal to the entire Consumer Surplus of a typical consumer?
What is the best way to use static supply and demand theory to analyze a dynamic world which is constantly changing?
The price level starts at 1.0 and rises by the end of the year to 1.15. What has happened to the value of the dollar over that same period of time? What are the consequences of that price level change? Will an increase or decrease in the money supply..
What are the studies that control for changes in technology, capital availability and perhaps other factors and quantify the impact of merger control on economy-wide market structure/concentration measures?
Determine if the firm's mix of inputs is optimal. Explain. If your answer to "b" is no, what should the firm do to improve its performance? Explain.
The average starting salary for engineers for 2002 was $47,000. The average in 2015 was 65,000. If we assume salaries are tied to inflation, what has been the average yearly inflation rate for this period? And, what should we anticipate the salary wi..
If the interest rate on euro-denominated assets is 7 percent and it is 5 percent on dollar- denominated assets, and if the dollar is expected to appreciate at a 4 percent rate, for Francois the Frenchman what is the expected rate of return on dollar-..
Suppose an individual’s utility is expressed as U=x^(1/2)y^(1/2)and their constraint is represented by the following: 2x+3y=B=100. What level of x and y should the individual consume to maximize utility? What is utility at the optimal level of consum..
An in dustry in which one firm can achieve economies of scale over the entire range of market supply is a
The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats, the price is $1 million and 240 luxury boats a week were bought. Now luxury boats are taxed at 20%. What is the price that ..
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