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Why are farmers paid so little? The price of agricultural goods like chickens and coffee has been falling for decades and the share going to farmers has also been falling. What is the "Global division of labor" in food products? Why are a few large multinational food companies like Tyson or Perdue able to capture a growing share of income in agriculture? If they are making monopoly profits, why don't new companies enter the market to drive up prices for produces and drives down corporate profits? Do you think that there is a general lesson here? If there is monopoly power in agriculture, do you think monopoly or perfect competition better characterizes markets in general?
The basic idea of Schumpeterian Business Cycles is that new technologies require creative destruction but will yield positive growth. These two opposing forces have impacts onto the real economy at different times, which will create fluctuations arou..
What is the probable effect of each of the following on the exchange rate of a country, other things being equal?
Consider an exchange economy with two prominent leaders: Romney and Bernanke. Each get utility from destroying jobs, J; and from power, P. What are the market supply functions for power and jobs? What is the income of both, expressed as a function o..
1. There are three economic actors in our circular ?ow model: households, ?rms and markets.
Illustrate what is equilibrium level of Aggregate Expenditures in this economy. At equilibrium, illustrate what is level of Consumption in this economy.
Using total revenue calculations, we can say that, given this change in price, total revenue (increased/ decreased).
A consumer has preferences represented by the utility function U(x1, x2) = ln x1 + x2 . Denote prices and income by p1, p2 and I respectively. Write the utility maximization problem and get the first order conditions. Solve the system of equations an..
Describe how a surplus of money leads to a change in bond prices and interest rates. Explain all the steps.
The salvage value of the machine will be $20,000. What is the rate of return for this machine?
Illustrate what variables or than cost appears or have biggest impact on demand for McDonald's products. How much influence does company have over se variables.
A firm is using 10 workers, and their average product is 200 units. Suppose the marginal product of labor is 250 units. In answering the questions below, explain your answers briefly. How much output is the firm producing? Is the marginal cost curve ..
What are the problems associated with the current educational system, where the public school has a monopoly on K–12 education in the local school district, and teachers are tenured?
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