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Consider a small country that is an exporter of good X. Suppose the government imposes a tariff on imports of good X
Using one graph, showing demand and supply of good X in the home country, carefully illustrate the effect of a tariff imposed by the home country. Explain
"The cost of a bushel of wheat, which was $3.00 last month, is $3.70 today. The demand curve for wheat must have shifted rightward in last month and today." Discuss
In which of the following situations is the Coase theorem likely to apply? Explain.
One months ago, they added five workers and productivity also increased by 50,000 pages. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier.
If there are 110 million people working, 5 million discouraged workers, 10 million receiving unemployment insurance benefits, and 15 million officially unemployed, how many people are in the labor force?
Discuss the differences between accounting profit and economic profit. What does it mean when a company makes zero accounting profit? How about zero economic profit?
The Performance by Patrice (PbP) Company purchased a Centaur Computer controlled manufacturing milling machine for $635,000 for use in its rear end manufacturing operations on November 8, 2007.
Compared to monopoly, perfect competition has ___ prices, ___ output and ___ barriers to entry.
Assume, no calls are currently on hold. If agent takes 5 minutes to complete current call, how many callers do you expect to be waiting by that time. Illustrate what is probability that none will be waiting.
Assume the hospital is a monopolist with a demand function given by p = 404−2x, where p is the price of hospital care and x is the quantity of hospital care. Assume that the hospital’s cost function is given by C = 300+4x+8x 2 , where C is total cost..
When transaction costs are low enough, efficient resource allocation will follow regardless of the particular assignment of property rights. When transaction costs are high enough, efficient resource allocation requires assigning property rights to t..
Is the United States Internal Revenue Service (IRS) the only service in mandating such pricing of intra company transfers? Would the concept of an arm’s-length price resolve the measurement issue in pricing intra company transfers? Why or why not?
Two banks (Franklin and Lincoln) compete for customers in the growing city of Logan town. Both banks are considering opening a branch office in one of three new neighbour hoods: Hillsboro, Fremont, or Oakdale. The strategies, assumed to be the same f..
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