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Suppose PlayStations and PlayStation games are complementary goods. Now there is a technological advance in the production of PlayStations. Use a supply/demand diagram of PlayStations market and a supply/demand diagram of PlayStation games market to illustrate and explain how the technological advance would affect consumer surplus and producer surplus in both markets. (Hint: some may be ambiguous because of lack of information.)
Assuming that Dilbert continues to have access to his company’s valuable technology trash, can Dilbert argue that his job is especially lucrative because he can sell the old power cords and other “trash” for an added income stream above his paid sala..
Various concepts of distance are used in international business. Define and explain at least five concepts of distance, and discuss how each might affect bilateral foreign direct investment (FDI) flows between countries.
The purpose of this assignment is to become familiar with the terms import and export, and then describe advantages or disadvantages of buying imports versus buying domestic products in relation to the fashion industry.
Elucidate a process under which the competing oligopolists can divide the cake so that the two consumers (who are also the producers) are protected from the downfalls of consumers in oligopolistic markets.
If the real wage is equivalent to the marginal product of labor such that w=MPL=9, how much labor will be demanded? What happens to the demand for labor when the real wage declines to $5? Now assume that the capital used in the production process is ..
The entry of new vendors in the market for ice cream will cause a: A.) movement down and to the left along the supply curve B.) movement up and to the right along the supply curve C.) shift to the right of the supply curve D.) shift to the left of th..
Suppose the Council of Economic Advisors (CEA) hired you as an Economist (Economic consultant). The head of the council tells that she believes the current unemployment rate of 9 % is too high.
The Government of Paraguay considers introducing a tax on pollution. They are thinking to make polluters pay an amount T (tax) for every ton of carbon they emit. If the government does implement the policy, the extra costs imposed on producers will b..
Because increased government spending or tax cuts cause higher government deficits, they also contribute to a rise in total planned expenditures and aggregate demand. Previously, the government operated with a balanced budget; however, recently, ther..
what rate of interest would she need to obtain her goal. Are cash payments that companies make to shareholders. Are cash payments that companies make to shareholders.
An increase in the supply of money will lead to a(n) ____ in equilibrium real GDP and a(n) _____ in equilibrium price level. To close an inflationary gap using monetary policy, the Federal Reserve should _____ the money supply to _____ investment and..
Over the years the market demand for “long-playing records made of polyvinyl has fallen considerably as new technologies replaced the old “lp” yet lps are still available for sale and they sell at price points higher (in some cases much higher) than ..
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