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A company operates plants in both the unites states(where capital is relatively cheap and labor relatively expensive) and mexico(where labor is relatively cheap and capital is relatively expensive).
Why is it unlikely that the cost-minimizing factor choice will be identical between the two plants?
Suppose two identical firms produce widgets and they are the only firms in the market. Find out the Stackleberg Equilibrium.
Characterize each of the following statements as true or false, and explain your answer.
A monopolist currently charges $50 a unit for the 100,000 units of product it produces and sells every month. An economic analysis has shown that,
Discuss the upshot of this policy in terms of a new equilibrium. Is this policy likely to have a negative repercussion on the crime rate? Can you come up with an idea concerning a major drawback of this policy?
Plain Truth Adverting employs KPR, a large accounting firm, to audit its books each year. This involves considerable expense for the advertising firm, since its sales account managers are very independent and maintain separate record keeping syste..
Find the probability limits of W1 and W2. State whether these estimators are consistent or inconsistent. Find Var(W1) and Var(W2). Argue that W1 is a better estimator than Y if ? is "close" to zero for any value of n. (Hint: Compare the Mean Square ..
Master Card has a series of cute commercials that list a series of accounting items and costs leading to a priceless product. Cell phones are often advertised as being free. In economics, it is said that nothing of value is either free or priceles..
Chris Cook studied the same situation and decided that the solar system will not require the $180 of maintenance every 4 years. Chris believes future replacements of either the conventional electric water heater or the solar water heater system ca..
If the CPI was 120 last year and is 132 this year, what is this year's rate of inflation? Instructions: Round your answer to two decimal places. In contrast, suppose that the CPI was 120 last year and is 118 this year. What is this year's rate of inf..
The market for Good Y, a perfectly competitive good, is made up of 15 producers who each produce the same amount of Good Y. If the price of Good Y is currently $100 and the total quantity supplied is 150, how many units of Good Y is each producer ..
If Greece leaves the Euro zone there will be macroeconomic consequences. The possible collapse of the Euro zone acts as a shock to sellers around the world worried about international economic stability. Show the short run impact of such an event..
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
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