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Consider an economy that consists of two regions - the East and West. The elasticity of labor demand in each region is -0.5. The economy-wide labor supply is perfectly inelastic. The labor market is initially in an economy wide equilibrium, with 600,000 people employed in the East and 400,000 in the West at the wage of $15 per hour. Suddenly, 20,000 people immigrate from abroad and initially settle in the West. They possess the same skills as the native residents and also supply their labor inelastically.
Depends on economic casebook how much does it cost to make a pair of nike shoes international.
illustrate what is the change in Clean-Springs' profit-maximizing levels of output, price and profit. Explain in words and with graph.
sofa manufacturer presently is using 50 workers also 30 machines to produce 5,000 sofas a day.
If the nominal social discount rate is 7% and the rate of inflation is currently stable at 2 percent, should the city build either facility.
Is this commitment irreversible. Analyze Fiat's entry in term of Ghemawat's framework for analyzing commitment.
A local restaurateur whose trade had been profitable for many years recently purchased a liquor license, giving her a legal right to sell beer.
How many workers should the firm hire if the price of the output is $10? Suppose the price of the output falls to $7.50. Illustrate what do you think would be the short-run impact on the firmâ??s production.
Also that would you considers more likely, to longer-term- U.S. government bonds have a high interest rate than short-term U.S. government bonds or vice versa.
which nation should the company locate its new plant so as to minimize costs per unit of output.
Indicate whether there will be economies of scale, diseconomies of scale, or constant returns to scale if the facilities are built optimally.
Illustrate what is the present macroeconomic situation (e.g. worrying about inflation also/or recession) in the U.S.
Is the product considered elastic, inelastic or unitary elastic. In a few sentences Illustrate what effect does the present supply also present Demand have on this product.
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