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Assuming that the euro-U.S Dollar exchange rate is 0.9. If a German buys an American automobile for $30,000, then what would the automobile cost in Euros? What would the automobile cost if the dollar depreciated by 20 percent?
Flicker has estimated that the demand equation of a typical subscriber is P = 12 ? 2Q, where Q is the number of monthly on-line video rentals. The marginal cost of each on-line video rentals is $2 per month. How much should Flicker charge per on-line..
Which country is capital abundant according to the Heckscher-Ohlin theorem? Given your answer to (a), draw the PPF for Canada. Also draw the indifference curve and the relative price line for the no-trade equilibrium.
Briefly explain what do understand by the concept of Philip' curve.
Efficiency can best be defined as the amount of output generated in a given amount of time,producing items using the least amount of resources or else.
Cool-Aire Corporation manufactures a line of room air conditioners. Its break- even sales level is 33,000 units. Sales are approximately normally distributed.
During the recent recession, when countries around the world suffered high unemployment rates and the governments were experiencing huge budget deficits, economists debated whether to raise or cut taxes or to raise or cut government spending.
Create a report that includes a discussion and analysis regarding how such a supplier makes such a determination in order to maximize the firm's profits.
Assume the supply for good x is estimated. Is good x storable. Explain it numerically the data you are using to suppor answer.
Calculate profit for each quantity. How much should the firm produce to maximize profit? Calculate marginal revenue and marginal cost for each quantity.
Illustrate the economy's adjustment to its long run equilibrium only, as the formerly dislocated (and now retrained) labour force is finding employment in new industries.
Identify a particular industry that meets the criteria for Pure Competition or Monopoly. Explain clearly why you think the industry is in Pure Competition or is a Monopoly and evaluate it from perspectives of efficiency and equity.
The law of comparative advantage recommends that countries specialize in those products in which they have a comparative advantage, not an absolute advantage.
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