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Go back to the model with ?rm performance differences in a single integrated market. Now assume that a new technology becomes available. Any ?rm can adopt the new technology, but its use requires an additional ?xed-cost investment. The bene?t of the new technology is that it reduces a ?rm's marginal cost of production by a given amount.
a. Could it be pro?t maximizing for some ?rms to adopt the new technology but not pro?t maximizing for other ?rms to adopt that same technology? Which ?rms would choose to adopt the new technology? How would they be different from the ?rms that choose not to adopt it?
b. Now assume that there are also trade costs. In the new equilibrium with both trade costs and technology adoption, ?rms decide whether to export and also whether to adopt the new technology. Would exporting ?rms be more or less likely to adopt the new technology relative to nonexporters? Why?
Total real rate of return
What was the rate of inflation for the month? How does that rate of inflation compare with the rate in the previous month?
Imagine that you have been hired as the Manager of Human Resources for the acute care hospital.
Economies of scale and efficiency
Write down everything you would require durint your preparation for the debate.your preparation should include graphs and formulas.
what assumptions about preferences imply that indifference curves have the bowed-in shape they are assumed to
Assume that demand for a commodity is represented by the equation P = 10 - 0.2 Q d, and supply by the equation P = 2 + 0.2 Qs where Qd and Q s are quantity demanded and quantity supplied, respectively, and P is the Price.
why do keynesian economists believe market forces do not automatically adjust for unemployment and inflation? what is
a statewide sample survey is to be made. first, the state is subdivided into countries. Seven countries are selected at random and further sampling is concentrated on these seven countries. what type of smapling is this
If the optimal number of facilities that minimizes the total logistical cost for a certain supply chain is five, what would be a logical justification for decision makers of this supply chain to build more than five facilities?
If the following products had an exercise tax placed on them, who (buyers or sellers) would pay the tax and why? Explain the economics concepts involved.
Two banks have lent $20million each to a country in an Emerging Market. Bank A has total assets of $220 million and a capital to total assets ratio of 7 percent. Bank B has total assets of $350 million and a capital to total assets ratio of 6 perc..
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