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Suppose the land is specific to agriculture, capital is specific to manufacturing, and labor is mobile between sectors. If there is an influx FDI into the country (increasing the amount of capital that is available), holding the prices of agriculture and manufacturing goods constant, what happens to the wage rate? What happens to the rental rate of capital? What happens to the rental rate of land? Explain your answer using the graph for the equilibrium in the specific-factor model.
How does this additional change alter the market shares of the two firms?
You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your “No Haggle” sales policy. Last year, your dealership earned record profits of $1.3 million. What price should you charge for a midsized automo..
Calculate the surplus or shortage of ice-cold beverage when P = $4, $5, and $6. Calculate the market equilibrium price-output combination.
The IT leadership team has determined that the college will add another satellite campus that will have a Learning Center with 20 computers and 10 classrooms.
Suppose a person has $20 to spend on music and likes both rap music (R) and country music (C) with a set of preferences so that U=C^1/2R^1/2. Write down the budget constraint equation for him. Show his optimal consumption choice in a graph. Use the h..
Are the Britannica on paper and the Britannica on CD close substitutes? What about the Britannica on CD and the Encarta on CD?
a) What must the equilibrium nominal interest rate be? b) What must the velocity of money be?
Give an example based on your experience of a situation in which using a multiple regression model or nonlinear regression model may have helped you make a better decision
Examine the effects of supply and demand of milk. How do markets operate to bring this product into existence? Think about how these different markets work together to create a new product. How does that relationship affect supply and demand for the ..
Apple and Samsung are competing in a duopoly. If both companies charge a high price, they each earn $900 million in economic profit. Construct a payoff matrix displaying the information above. Does either company have a dominant strategy? If so, whic..
Compare and contrast a public good versus a private good. What are the principal characteristics of each? What are the two key characteristics of public goods? Is there a free rider problem when it comes to public goods? Why?
Suppose a firm’s total cost curve can be represented as TC = 15Q2 +8Q + 45 and that marginal cost can be represented by 30Q + 8. What is this firm’s total fixed cost? Find the output level that minimizes average total cost.
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