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Two features of less developed countries are an absence of strong contract law and limited transportation networks. How might the absence affect the vertical and horizontal boundaries of firms there?
A new health minister proposes to distribute an apple a day for free to every citizen. To be effective the legislation states that the free apples may not be traded or sold. Explain why this “no trade” policy would be inefficient.
Northrop Grumman is making a new long range bomber for the Air Force. Development costs are $2 billion in 2016, and $3 billion in each of the years 2017 through 2030. Gen. Wrench knows nothing about cash flow discounting, and so she treats $1 tomorro..
An important decision places Christmas holiday celebrators: To buy real or artificial trees? A market research firm reported that 62% of individuals polled
Hypothetical Country has $130 in currency, $520 in reserves, and $910 in deposits. Calculate the money multiplier. Calculate the reserve ratio. Use decimal number as an answer. Calculate money supply M1.
In April 1978, Fidel Castro announced that Cubans who wanted to leave Cuba for the United States could do so from the port of Mariel, Cuba. Within 6 month, about 125,000 (mainly) lowskill Cubans had flowed through Mariel for Miami, resulting in a sud..
Briefly describe the two main layout types. Provide the main advantages and disadvantages of both types.
(a) Find the Marshallian demands for x and y and the indirect utility function.
Let's tax Jack 80 dollars and Moe 40 dollars. Then let's use those tax revenues to raise Manny's income by 120 dollars. What happens to market demand?
What is the future value in five years of on ordinary annuity cash flow of $2134 every quarter of the year at the end of the period, add on annual interest rate
If a consumer decides to spend $600 more in the economy, how much of an impact will that have on the GDP for the country? Why would that effect not be correct, what are issues that might affect that total amount?
Suppose two countries, A and B, with the same production function Y = K? L1?? . The value of is 0.30, the growth rate of population is 2% and the depreciation rate is 5%. Show that with price-taking firms the share of labor must be 1? Compare both e..
There is an incumbent monopolist (I) and a potential entrant (E) in the Maryland soap market. Soap is homogenous and market inverse demand is P = 150 - Q where Q is total output. For what values of F can entry not be deterred? What type of strategic ..
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