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If unit labor costs in Spain and Portugal rise, but unit labor costs in Germany decline and other producer prices remain unchanged, what effect should these factors, by themselves, have on export trade, and why?
Marginal Revenue (MR) = $130 Total Cost (TC) = $1,100 + 135Q + 0.6Q2 Marginal Cost (MC) = 135 + 1.2Q As the plant manager, should you recommend to the owners that the plant be shut down for a while? Justify your answer using at leas..
How do barriers to entry impact the level of competition in a market What might happen to market price as greater barriers to entry come into existence? Not all barriers to entry are created through market conditions.
Suppose the U.S government decides that the incomes of dairy farmers should be maintained at a level then how much surplus milk will be produced as a result of this policy.
Describe wage determination in a labor market in which workers are unorganized and many firms actively compete for the services of labor. Show this situation graphically, using W1 to indicate the equilibrium wage rate and Q1 to show the number of ..
Compute the producer surplus from parts a and b. Are producers better or worse off as a result of international trade? Discuss why.
maria and emmanuel need to cut logs for shelter or gather food to stay alive per day. maria produces 10 cut logs of shelter and 10 baskets of food. emmanuel produces 5 cut logs of shelter and 8 baskets of food. a) what is the opportunity cost for m..
Two economists took a close look at a broad survey of more than 50,000 persons each year from 1987 to 1999. They found that drinkers do reduce their consumption substantially in economic downturns.
The United State Congress is currently debating new budget. Most Republicans wish to reduce federal spending. Democrats do not want to decrease federal spending by as much as Republicans do.
At which point do you reach equilibrium. Also explain why is that considered equilibrium.
A construction manager earns $70,000 every year working for a regional home builder decided to open his own home building company.
Explain what it meant by liquidity trap.Use the interest parity condition to show how the exchange rate is determined in such a situation. What can monetary policy so in such a situation
Assume you received a four percent increase in your nominal salary.
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