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Based on what you have learned about the relationship between TR and elasticity of demand, explain how an airline might take advantage of this information in order to maximize its profits? (Tip: How does an airline company separate the market of consumers with different elasticities, then price the tickets?)
Suppose you can collect country level trade flows and GDP data. Explain how can you verify monopolistic competition model with data. Illustrate what do you expect is impact of transportation costs.
Sketch the isoquant corresponding to an output level of 100 units What is the MRTS for this production function? Does the isoquant exhibit a diminishing MRTS?
A fungus destroys 25% of the banana crop in Central America and the number of immigrant workers who pick apples increases. What happens to the supply or demand for apples?
If it is easy for a firm to get into or exit from a market, then a firm in that market will be able to earn positive economic profits. When economic profit is positive,
What is happening to the US trade balance in each of the following situations? Explain. a. Lower international trade barriers for imported products in the US b. Prices in the US decreases more than prices abroad c. Economic improvement starts in Cana..
tate in words and show with a graph the effect of the following events on equilibrium price and quantity of the market given. Assume you live in an economy that has a population of 2,000,000 people over the age of 16. The labor force in your economy ..
q1. in the undercover economist harford discusses greenbelts. what is a greenbelt and how does it affect demand andor
Explore in particular how the two companies respond to the macroeconomic conditions in terms of their.
Place the items into the columns according to whether a change in the item would cause the curve to shift. If an item\'s change shifts more than one curve, place it in a single column according to this order: Long Run Aggregate Supply - Short Run Agg..
Explain how a dead weight loss can be generated in an imperfect market and also in a case of a negative externality. What policies government can use to try to eliminate the deadweight loss? Effect of Price Ceiling and a Price Floor-Price Floors and ..
q1. 1. at point e in figure 8.4b is mp kr greater or less than mp lw? 2. explain how do you know? 3. use this
Find out the total revenue and marginal revenue functions for men and women.
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