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Suppose that a U.S. dollar buys more gold in Mexico than it buys in Japan. What does the law of one price imply will happen?
Firm is contemplating replacing a computer (D) it purchased three years ago for 6,000. In two years it will have a salvage value of $800. Operating a maintenance costs have been $1,000 per year. The computer currently has a trade in value of $3,000 t..
Rose growing is a perfectly competitive industry and all rose growers have the same cost curves. The market price of roses is $7 a bunch and each grower maximizes profit by producing 1500 bunches a week. The average total cost of producing roses is $..
State and briefly explain internal and external economies of scale. Also, distinguish between two types of agglomeration economies (urbanization and localization) by giving examples of such from your general knowledge of the subject. - Justify the pr..
Suppose that you have a job paying $70,000 per year. With a 5% probability, next year your wage will be reduced to $40,000 for the year. What is your expected income next year? Suppose that you could insure yourself against the risk of reduced consum..
Identify what FIDO stands for and how 3M puts FIDO into practice. Assess whether FIDO’s approach could work for other companies or if it is unique to 3M and the products they produce. Write three pages on whether 3M’s specific practice of hiring loca..
Theoretically, if there is free trade, exports will tend to equal imports through adjustments in the currency exchange rates. Demonstrate this adjustment process graphically and verbally.
The terms of trade if the united states trades 1 can of soda for 5 units of clothing.
Explain the Law of Demand. What are their assumptions? What are demand curve shifters and what causes them to shift? What is market equilibrium? What might keep the market from moving all the way to that equilibrium point? “Price control can be more ..
What is the current account for the economy below? If there is no statistical discrepancy what is the capital account?
Suppose a firm is currently using 500 laborers and 325 units of capital to produce its product. The wage rate is $25, and the price of capital is $130. The last laborer adds 25 units to total output, while the last unit of capital adds 65 units to to..
What are the arguments for and against granting amnesty and the possibility of citizenship to illegal immigrants? Name at least 5 for each.
Decreasing returns to scale occurs when a firm has to increase all inputs at an increasing rate to maintain a constant rate of increase in its output.
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