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Q. Why? There must be something that prevents arbitrage across countries. Transportation costs would prevent consumers from arbitraging. But does that really explain apparent volatility in deviations from law of one price? Even though transport costs could allow for large variance, why is re a large variance? Do we see same sort of variance for prices in markets within a country that are segmented by large distances?
Elucidate how does N the number of firms in the market, affect each firms Demand curve. Explain why.
In late 2006 and early 2007, orange crops in Florida were smaller than expected, and the crop in California was put in a deep freeze by an Arctic cold front.
Economists look at the differences between the short run and the long run in macroeconomics. Explain how might knowing this affect you as the manager of a large firm.
Discusss the effects to the equilibrium price level and GDP. Make sure to address consumption, disposable income, and aggregate demand in your answer.
Assuming Mr. Delaney decides to keep the body shop, and the consultant reports that it is feasible to raise prices, should Mr. Delaney do so. If he does, illustrate what general guide can you suggest as to how much price should be increased.
Assume that economy starts at equilibrium and mpc = 0.8. Illustrate what would be effect of a $500 increase in taxes once all rounds of multiplier process are complete.
Believe that they must be able to explain people's tastes in order to elucidate what happens when tastes change.
He sold the house in 2006 for $225,0000. Which statements is correct regarding the sale of the house.
the firm will earn $15,000 if it introduces the new product, and revamping the production facilities will earn new profits of $60,000. What should the manager do.
If the government wanted to achieve the same change in GDP as in part 8 by cutting taxes instead of increasing spending, how large would the tax cut need to be.
The setup cost is $100 per order up to 99. For orders of less than a pallet, the setup cost is $200. The setup cost for pallet loads is $1000. The holding cost is 1% of the purchasing cost per item per week.
Four students from your economics class are sitting in a local restaurant Talk about the marketplace for coffee.
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