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In one day Cindy can either build 1 computer or 2 stereos, and in one day Dana can build either 2 computers or 3 stereos. Of course, Cindy or Dana could split their time between the two activities and produce some combination of the two products.
Suppose Cindy and Dana each specialize in the production of the good for which she has the comparative advantage, and they agree to trade at a price of 1 stereo for 1 computer.
Is both of them will gain from this trade? Why can somebody explain
Illustrate what do these numbers imply for the decision of when to open a shared facility versus two separate facilities.
Find an article in a business journal and 1st summarize the facts presented in the article and then relate these facts to some microeconomics/macroeconomic concept that you discovered in the reading.
Let’s consider the effects of inflation in an economy composed only of two people: Bob, a bean farmer, and Rita, a rice farmer. Bob and Rita both always consume equal amounts of rice and beans. In 2000, the price of beans was $1, and the price of ric..
John Q is planning to buy a bond having a face value of $100,000 for $90,000. The bond is paying 8% per year payable semi-annually and is redeemable 6 years from now at its face value. What is the rate of return on this investment per six months a..
1. Determine if the benefits of free trade outweigh the drawbacks, and what could be done to address the drawbacks (if anything). 2. State whether you believe fair trade is a fad or a trend. Provide support for your reasons.
Suppose that ranchers can buy up to a collective total of 200 cows and run them on the open range. The value of each cow after it has grazed is given by V= $2000-10C, where C is the total number of cows on the range.
What is the profit-maximizing price to charge a Texan for a car wash? What is the profit-maximizing price to charge a Californian for a car wash?
suppose that in one year household consumption falls by $20 billion(compared to the year before), but business firms continue to produce consumer goods at an unchanged rate. if there is no other change affecting real GDP that year
East Chicago is a major production center of steel in the United States. In the process of producing steel, the firms in this area emit pollution both into the air and into the water which adversely affect Indiana residents. The EPAhas determined ..
Describe (with appropriate figure) short run and the long run impact of immigration on native labour market when the immigrants and natives are complements.
What happens when supply is totally elastic or totally inelastic, and a subsidy is given by the government: Will the producer change the amount of units he’s supplying to the market? And will the price received by the producer be reduced
Upon entering college, Meena borrowed the limit of $5000 on her credit card to help pay expenses. The credit card company charges 19.95% annual interest, compounded continuously. how much will meena owe when she graduates in four years?
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