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Using a graph explain the welfare impact of export taxes on domestic consumers, producers, government, and national welfare in a) a small country b) a large country.
What are the three functions of money? In your own words, explain why money is needed in a modern economy. Why would it be very difficult to get by without money?
Suppose that inverse demand is given by D(Q) = 56 − 2Q, Q = q1 + q2 and the cost function is TC(qi ) = 20qi + f (a) Find the limit output for fixed costs ( f ) equal to 50, 32, 18, and 2. (b) What is the SPNE for the entry game with the following tim..
Consider the following production function f(k,l) = k^1/3 + l^1/3. Suppose the government taxes labor at by an amount t per unit of labor. Rewrite the long run cost function including the tax.
Honda uses flexible plants in manufacturing of its cars. Discuss where this method of production results in optimum output.
If consumers perceive several goods to be homogeneous, they believe the goods to be,
a) What is Terms of Trade? How is it computed? Explain with an example. b) What is Comparative Advantage? Explain with an example of a two-country and two-commodity model.
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 80 - 0.5P, and the marginal cost of production is $100. Determine the optimal number of units to put in ..
Federal Employees Health Benefits Program as the Model for Marketplace Plans Many Americans have little choice about health insurance. For the majority, the choices are to accept the plan offered by their employer, by their state Medicaid agency, or ..
Explain how the indifference curve and budget line apparatus are used to derive a consumer's demand curve.
botco, inc. is constructing remote-controlled cars to sell to hobbyists. After doing some analysis, botco's chief economist reported that, at the current level of output per month, the marginal benefit for making remote-controlled cars exceeds the ma..
Gross Domestic Product involves a calculation of the total value of the goods and services generated within an economy in a stated or identified time period. The main difference between real GDP and nominal GDP is that nominal GDP does not consider h..
Discuss the role of advertising also the desired impact on the industry's demand curve. Contrast this to advertising at the industry level.
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