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What is creative destruction? Is it important to the economic development?
you are comparing a municipal bond and a US treasury bond as a possible investment for your corporation both bonds have the same maturity and both bonds are equally risky and equally liquid the treasury bonds yield 7% your corporations marginal incom..
Consider a profit-maximizing monopoly pricing under the following conditions. The profit-maximizing quantity is 40 units, the profit-maximizing price is $160, and the marginal cost of the 40th unit is $120.
Elucidate what type of returns to scale does this technology represent.
Devote too few resources to the creation of knowledge. Explain how does the U.S. government correct for this apparent market failure.
In long-run competitive equilibrium, product price equals long-run average cost and also equals long-run marginal cost. Thus, economic profit equals $0. Please explain why firms have not incentive to exit the industry.
What do high and low levels of unemployment indicate? What does the exchange rate regime tell you about the economy? Consider the presence of existing industries and identify areas of opportunity or risk?
Compute effects of an appreciation and a depreciation in the exchange rate on the price of its output in that country and the likely effects on the demand for its output.
Puma and Lima are two countries that both produce bananas and sugar. In Puma each worker in a one-hour period can produce either 11.83 pounds of bananas or 3.96 pounds of sugar. In Lima each worker in a one-hour period can produce either 14.43 pounds..
What do you think based on your current knowledge. Then look up some facts and answer them again. Is inflation: High, Moderate, or Low? Is unemployment: High, Moderate or Low; what is the unemployment rate? Are interest rates: High, Moderate, or Low?..
How can international trade theory explain intra-industry trade? why might we except intra-industry trade based on scale economies to be less politically controversial than intra-industry trade based on comparative advangate?
Draw the industry supply and demand curves. Describe and graph what happens to the industry curves in response to the existence of economic profits. Show what happens to quantity and price
In 1986, the US congress enacted a rule that required railroads to disclose all their contractual terms with grain shippers. The result was that railroad shipping rates fell for routes where there was substantial competition with barges, but railroad..
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