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Are each of the following true, false or uncertain? Justify your answer in two (2) sentences or less. If the answer is “false” you may provide a counter-example as justification.
Suppose biochemists discover an enzyme that can double the amount of ethanol that may be derived from a given amount of biomass. Based on this technological development, we expect the supply curve for ethanol to shift to the right.
Briefly discuss the differences between the Ricardian Theory, Specific Factors Model and Heckscher-Ohlin Theory of Trade.
A process plant making 4000 tons per year of a product selling for $0.80 per kg has annual direct production costs of $2 million at 100 percent capacity and other fixed costs of $700,000. Construct the break-even chart for the process. Determine the ..
Do sibs have the expected effect. Explain. Holding medic and feduc fixed, by how much do sibs have to increase to reduce predicted years of education by one year.
How many different combinations of 3 winning tickets can there be? Suppose you hold 4 tickets. What is the probability that you will win exactly 2 out of the 3 prizes.
Consider the following statements on the basis of positive economic analysis that assumes ceteris paribus. Liston other thing that might change and thus alter the outcome stated.
A firm has a demand equation Q=200-5P and is currently charging $2 for its product. The firm is currently maximizing profits, and its advertising elasticity of demand is .005. Determine the firm's optimal advertising-to-sales ratio. Determine the pro..
One of basic economic laws is ‘law of one price.' It says that provided certain assumptions one would expect that if free trade is allowed, illustrate what three of those assumptions likely are.
Explain why it is an equilibrium under these assumptions for: the high-ability workers to earn the degree and be paid $40,000, and the low-ability workers to not earn the degree and be paid $20,000.
Suppose that an increase in the price of carrots from $1.30 to $1.80 per pound increases the quantity of carrots the carrot farmers produce from 1.2 million pounds to 1.6 million pounds. Using the midpoint method, what is the approximate value of the..
____________ measures the percentage change in the quantity of good x resulting from a percentage change.
Hunt Taxidermy, Inc., is concerned about the taxes paid by the company in 2015. In addition to $43.1 million of taxable income, the firm received $3,035,000 of interest on state-issued bonds and $1,100,000 of dividends on common stock it owns in Oakd..
The aluminum industry faces a private marginal cost curve PMC = 2Q and a market inverse-demand curve of PD = 60 – QD. However, production creates an externality with marginal damages of MD = Q. What is the resulting price that consumers face with the..
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