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ABC produces car brakes. WMB wants to order 10000 brakes for a price of $50 per brake from ABC, but only if ABC builds a factory for the brakes right next to WNB's factory. Building the factory costs $200000 and producing a brake costs 20. After building the factory, ABC could also sell the brakes to a competitor for $25 per brake.
At what price per brake can WMB hold up ABC after ABC has built the factory?
Based on the Solow model, how would each of the following affect consumption per employee in the long run? Describe and illustrate your answer graphically.
Cause the aggregate demand curve to shift to the right
3. Suppose that the required reserve ratio is 0.12 for deposits and there are no excess reserves. Suppose also that the total demand for currency is equal to 0.3 times deposits. a. If total reserves are $40 billion, what is the level of the money s..
The Aluminum Association reports
Immigration has both positive and negative implications for the United States' economy. What is your opinion regarding immigration as it pertains to the factor endowment model of Heckscher and Olin? Does immigration hinder or facilitate internati..
Southern Oil Company produces two grades of gasoline: regular and premium. The profit contributions are $0.30 per gallon for regular gasoline and .50 per gallon for premium gasoline.
Let u(x,y) = x1/3y2/3 and let I = 100, Px = Py = 1. Write the FOC for the consumer's UMP and compute the consumer's demand function. Let U(x,y)=5x+4y and let I denote income and Px,Py the prices of the goods. Compute the demand functions for good..
Graph these two individual pollution demand curves and indicate the levels of pollution (both graphically and numerically) that will be produced by these plants in the absence of regulation.
a gasoline station very near a professional football stadium parks cars on its lot to make money on game days. last
Critical Thinking: Last year Congress passed a bill creating a new national health care system that is not yet fully explained. What principles of economics relate to this decision
Assume a consumer who has current-period income y=200, future period income y’=150, current taxes t = 40, and future taxes t’= 50, and faces a market interest rate of r=5 percent or .05. The consumer would like to consume such that c’=c*(1+r) if poss..
Discuss the pros and cons, for returning to the gold standard. Provide the positive and negative effects of reversing the current policy.
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