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Mexico and Brazil have very different trading patterns. While Mexico trades mainly with the United States, Brazil trades about equally with the United States and with the European Union. In addition, Mexico does much more trade relative to its GDP. Explain these differences using the gravity model.
Calculate fixed and variable costs of cleaning 0, 3, 8, and 12 rooms and the average total cost and marginal cost at 3, 8, and 13 rooms and enter them in the table (You can cut and paste the table Quantity of output None 3/ 3rd rooms 8/8th rooms 1..
How much profit will she make when maximizing total revenue?
Suppose short-run output over the next four years is +1%, 0%, -1%, and -2%. According to Okun's law, what unemployment rates would we expect to see in this economy b. Consider another economy in which the unemployment rate over the next three year..
How would you test the hypothesis that the error term in the popula- tion regression is normally distribute? Show the necessary calculations.
Dertermine the profit maximizing level of output to be produced and sold in each submarket. What price should the firm charge in each submarket. Evaluate the price elasticity of deman in each submarket.
The firm initially produces and sells 100 units of output. If the price elasticity of demand for the firm s product is 2.0, how will featherbedding affect the firm s total demand for labor?
A delivery company is considering adding another vehicle to its delivery fleet, all the vehicles of which are rented for $100 per day. Assume that the additional vehicle would be capable of delivering 1500 packages per day.
Suppose a monopolist faces a market demand curve given by P=220-3Q. Also, the marginal cost of production is constant and equal to 40. There are not fixed costs. What price should the monopolist charge in order to maximize profit as well as the dea..
The St. Thomas Winery plans to open a new production facility in the Napa Valley of California. Based on information provided by the accounting department, the company estimates fixed costs of $250,000 per year
Suppose the yield on a 30-year corporate bond rated Aaa is 9.50 percent and the yield on a 30-year Treasury bond is 9.00 percent.What is the default risk premium Would you expect a higher or lower default risk premium on an A-rated bond
You have been hired to predict the effects of increasing the price of iTunes songs by 10% from .99 cents to $1.09. You are interested in the effects of the price hike on the number of songs downloaded legally from itunes the number of songs downlo..
Suppose the consumption function is C = $400 billion + 0.8Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with ( a ) A $50 billion increase in gov..
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