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The US cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under the proposed settlement, cigarette companies will make fixed annual payments to the government based on their historic market shares. Suppose a manufacturer estimates its marginal cost at $1.00 per pack, its own price elasticity at -2, and sets its price at $2.00. That company's settlement obligations are expected to raise its average total cost per pack by about $.60. What effect with this have on its optimal price?
Certainly the most dramatic change in the structure of the U.S. labor force in the period since the Second World War has been the increase in participation by married women in paid employment. which led to increased numbers of employed married wome..
Given an hour of production, Norway can manufacture ten cars and twenty trucks and Costa Rica can manufacture five cars and fifteen trucks.
1- What are the limits of the terms of trade Specifically, when is Canada willing to trade with Japan, and when is Japan willing to trade with Canada 2- Which country has the absolute advantage in beef production 3- Which country has the absolute a..
Using the concepts of rational behavior, utility, opportunity cost, marginal benefits and marginal costs, and allocative efficiency and content from the economics USA. comment on whether the United States should drill for oil in Alaska and off the..
In 2006, U.S. output was $14 trillion and Chinese output was $3 trillion. Suppose that from now on, the output of China grows at an annual rate of 9% per year, while the output of the U.S. grows at an annual rate of 3.5% per year. a. How many year..
A study conducted by the Moscow-based management consulting firm Strategy Partners found that the average labor productivity in Russia is only 17 percent of labor productivity in the United States. What factors would cause U.S. labor productiv..
Refer to the Real Estate data, which reports information on homes sold in the Goodyear, Arizona, and area during the last year. Prepare a report on the selling prices of the homes. a.) Around what values do the data tend to cluster
Who has a comparative advantage in the production of wristbands and for Kristen and for Anna, what is the opportunity cost of a pot holder? Who has a comparative advantage in the production of pot holders? Explain your answer.
Economic fluctuations (or business cycles) are fluctuations in the level of economic activity, relative to a long-term growth trend. Comparing and contrasting the economic fluctuation the United States has experiences from 1990 to current date.
due to growing U.S. economy, the overall market demand for nails will increase by 2 percent. Based on this information should you plan to increase or decrease your production on nails. the overall market supply of nails will decrease by 2 percent.
Why are common borders and cultural similarities often an additional factor to determine who trades most with whom and why? Use your knowledge of the gravity model to justify your answer through two suitable examples.
Between 2003 and 2004, U.S. employment increased by 1.5 million workers, yet the number of unemployed workers fell by only 0.6 million. Can these numbers be consistent with each other
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