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After running high current account surpluses in the second half of the 1980s, Germany ran sizable deficits in the early 1990s. The most important reason for the current account deficit was the surge in demand from eastern Germany after reunification, causing imports to rise sharply. At the same time, Germany went from being a net creditor country to being a net debtor. Explain why this is a logical implication of the current account deficits. Interest rates in Germany were his torically high during this period. Why might that have been the case? Could East Germany have been developed without running a current account deficit? How?
Compare the advantages as well as disadvantages of fee for service payments and a DRG-based payment system
The annual fixed cost for an inspecting and profiling web controller manufacturing company is $44,000 and variable cost is $38/unit. If selling price per unit is p = 495 -.05x, what is the company’s range of profitability demand? What is the optimum ..
Mbank has deposit liabilities of $100 million. It only keeps the minimum cash reserves required by law of 10%. Its annual costs (wages, rent, utilities, etc.) are $2.5 million. What is Mbank's profit when it charges 7% annual interest on its loans, a..
In an article about the financial problems of the USA today, Newsweek reported that the paper was losing about $20 million a year.
Draw what would happen to equilibrium if both supply and demand shifted to the right at the same.What happens to equilibrium quantity and price?
Now suppose that Charles Home improvement, when the disposal cost of old water heaters is included, has exactly the same average and marginal cost curves for installing replacement water heaters as does ABC water heater.
Assume you are given the following information about a particular industry, Determine the equilibrium price, the equilibrium quantity, output supplied by the firm, and the profit of each firm.
A perfectly competitive market company realizes an average of $11 and an average total cost of $10.00. Marginal cost curve crosses marginal revenue curve at an output level of 100 units.
Explain the science of economics in the presence of making a profit with scarce resources
If my Unit of Ouput is 4, my Total Fixed Cost is 20, my Average Total Cost is 12, and my Average Fixed Cost is 5 then what is my Total Variable Cost for this problem?
Consider a farm in the former Soviet Union. Try to describe how dicisions on the number of chickens to be raised, and the amount of each feed to use in raising them, were made under the old communist regime.
There is a vast number of hog farmers in Canada. Industry should be a good approximation to perfectly competitive market. The demand for processed pork in Canada is;
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