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You are the manager of an organization in America that distributes blood to hospitals in all 50 states and the District of Columbia. A recent report indicates that nearly 50 Americans contract HIV each year through blood transfusions. Although every pint of blood donated in the United States undergoes a battery of nine different tests, existing screening methods can detect only the antibodies produced by the body's immune system-not foreign agents in the blood. Since it takes weeks or even months for these antibodies to build up in the blood, newly infected HIV donors can pass along the virus through blood that has passed existing screening tests. Happily, researchers have developed a series of new tests aimed at detecting and removing infections from donated blood before it is used in transfusions. The obvious benefit of these tests is the reduced incidence of the infection through blood transfusions. The report indicates that the current price of decontaminated blood is $80 per pint. However, if the new screening methods are adopted, the demand and supply for decontaminated blood will change to Qd = 175 - P and Qs = 2P - 200. What price do you expect to prevail if the new screening methods are adopted? How many units of blood will be used in the United States? What is the level of consumer and producer surplus?
Smith is a currency trader and reviewing forward foreign exchange rates. His investors have made several statements regarding foreign exchange rates.
Commercial real estate prices and rental rates suffered substantial declines in the past year (Newsweek, July 27, 2009). These declines were particularly severe in Asia; annual lease rates in Tokyo, Hong Kong, and Singapore declined by 40% or more..
Describe unequivocally why the foundation of trade has nothing to do with absolute advantage and only law of comparative advantage is relevant.
If the U.S. dollar were to appreciate substantially, what steps could a domestic manufacturer like Cummins Engine Co of Columbus, Indiana, take in advance to reduce the effect of the exchange rate fluctuation on company profitability
Determine what does the Stolper-Samuelson theorem suggest in case of a country being opened to international trade?
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..
the joint probability distribution between employment status and college graduation among those either employed or looking for work (unemployed) in the working age U.S. population for 2008. Joint Distribution of Employment Status and College Gradua..
We are constantly hearing about the mass exodus of jobs to other countries (phone service, computer service, sales). Use the concept of comparative advantage to explain why this is occurring. Also, explain how the U.S. benefits
Suppose if you were President of the United States and you were making decisions on trading, would you rather have a comparative or absolute advantage in trading?
A U.S. exporter sell $1 million worth of goods to a English importer in May. The export sales contract is drawn up in dollars at the May spot rate of £1=$1.750. Payment (in dollars) is to be made six months after the date of the contract, when the..
Research the international business activities controlled in one specific emerging market through a well known multinational firm or a multinational organization you know well.
What will be the effects of an increase in the money supply
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