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If a few oil-producing countries in the Middle East decide to jointly limit the production of oil, how they will agree to lower the price of oil in order to increase their profits. they are forming a cartel. they would like the price of oil to be the same as if the market were perfectly competitive. game theory does not apply to their actions because they are nations, not firms. they will try to operate as a large, monopolistically competitive firm.
The absolute value of tea was $12 a pound and the absolute price of a Honda Civic was $16,000. In 2007, the absolute price of tea increased to $15 per pound
According to Staffan Linder, there are 3-explanations of international trade patterns one for produces and another for primary goods.
Formerly, the market for air travel within Europe was highly regulated. Entry for new airplanes was severely restricted, and air fare were set by regulation. Partly as a result, European air fares were higher than US fares for routes of comparable..
If the local environmental quality in Tennessee declines as a result of this trade, then indicate a potential Coase agreement that could avoid the environmental decline and would still make the trade profitable to both parties ? Is such a trade po..
Discuss why do many economists believe that the market system is the most efficient economic system for allocating resources?
If the relative wage w/w* for US decreases to 5 due to productivity changes, which country would now be exporter of books, and why?
The consumption function is given by C = 200 + 0.75(Y - T ). The investment function is I = 200 - 25r, r is the real interest rate. Government buy and taxes are both 100.
"The theory of the second best leaves welfare economists 'high and dry' since not only does it abolish the established objectives of first-best situations,
Adele Corporation is planning the replacement of some electric generating equipment by a more efficient, technologically advanced model.
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
Suppose two open economies A and B. In this economy only one good is manufactured for time t = 0 and price P(0,A)=1 Dollar and P(0,B) = 1,5 Euro.
Describe how each of the following will affect the relative values of the dollar and the French franc, Income growth higher in the US than in France.
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