Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Home and Foreign both produce cars and food using labor and capital. In each country, labor and capital are both freely mobile across industries. It takes 5 units of labor and 3 units of capital to produce 1 unit of food, and 4 units of labor and 4 units of capital to produce 1 car. Home has 600 units of labor and 400 units of capital, while Foreign has 600 units of labor and 500 units of capital. Each country has the same relative demand curve, given by
Pf/Pc= 1.1 - .075 * Qf/Qc
(i) Which country is labor rich? Labor poor? Which good is labor intensive? Capital intensive? (ii) How much of each good will each country produce? (iii) For Home, find the relative price of food, the wage, and the rental price of capital in autarky (no trade). Draw the budget line for a Home worker and for the owner of 1 unit of Home capital. Note: the rental price of capital is the “wage” of capital. (iv) Do the calculation of (iii) for free trade. Draw the budget lines on the same diagram as you used for (iii). (v) Who in Home benefits from trade? Is it the scarce factor or the abundant factor? Who loses? The scarce factor or the abundant factor?
Assume that the demand for iron (the primary component of steel) is Q = P^(-a)? , where the exogenous parameter a>0 takes some fixed value. For all parts assume that the iron market is in equilibrium. Find the inverse demand curve for iron. Does the ..
Suppose that inverse demand is given by D(Q) = 56 − 2Q, Q = q1 + q2 and the cost function is TC(qi ) = 20qi + f (a) Find the limit output for fixed costs ( f ) equal to 50, 32, 18, and 2. (b) What is the SPNE for the entry game with the following tim..
q.briefly explicate what means by the market is a commons. in your brief essay create sure you cover each of following
According to the production possibilities model, does a reduction in the unemployment rate cause the economy to grow (yes or no)? Explain why or why not. What about Improvement in technology.
The first cash flow of a 25-year series of quarterly cash flows is equal to $35,000. Each cash flow in the series increases by $800. Find the amount of each cash flow in an equal quarterly cash flow series that is equivalent to the increasing cash fl..
Increase in demand and increase in supply will lead to?:
compute the breackeven output quantities for each alternative. What is the difference between movements along IS and LM curves and shifts of the entire curves.
Elucidate an example of a microeconomic and macroeconomic phenomenon. Would you give an example of a microeconomic decision you have made at home or work.
What effect, if any, does each of the following events have on the price elasticity of demand for corporate-owned jets?
Assume that you live in a simple economy in which only three goods are produced and traded.
Assume firm A wants to merge with firm B for $7.5 billion. Before the potential merger, the market for the good produced by firm A and B consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman index of 2,621. Firm B’s..
A firm that makes car parts wants to adopt pay schemes that will best motivate its various workers to be productive and they hire you as a consultant.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd