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Will the gains from trade be larger or smaller if one of the factors is not mobile in production? Why? Demonstrate your conclusion graphically. Is it true that if neither factor is mobile the country will receive no gains from trade? Explain.
The vast majority of us engage in bailments often, and usually we don't think about it too much. Now that you've looked at bailments, tell the class (in general terms... no need for names of people or companies) about a bailment you have been party t..
Describe the process of decision analysis with probabilities. Make sure to talk about the expected value approach, decision trees, sensitivity analysis, and how sample information may be used to revise and improve the decision analysis. Feel free to ..
The long-run total cost function for a firm producing skateboards is: TC = q^2 - 45q^2 + 900q, where q is the number of skateboards per week. MC = 3q^2 - 90q + 900. Find the average cost function and find the output level that minimize the average to..
Discuss the effect of the following public policies on the supply of labor. If there is a difference, discuss how the effect varies over time (e.g., now versus in the future) or across different groups of people. Allowing a tax credit for childcare e..
Suppose that in a year when GDP is rising rapidly you also observe the government budget balance increasing. How can you explain this correlation? Now suppose instead that in a year when GDP is rising rapidly you also observe the Government budget ba..
Two mutually exclusive alternatives are under consideration. Alt A. will cost $40,000, provide annual benefits of $15,000 and a salvage of $4000 at the end of its 4 year life. Alternate B will cost $63,000, provide annual benefits of $21,000, and a s..
Illustrate what about burning all but one of his ships made to a utilize, powerful strategic commitment for Cortes in Mexico.
During a year of operation, a firm collects $175,000 in revenue and spends $80,000 on raw materials, labor expense, utilities, and rent. The owners of the firm have provided $500,000 of their own money to the firm instead of investing the money and e..
Assume a monopolist sells its product or service for the same price to all buyers. Also assume that the monopolist lowers its price to increase unit sales (i.e. output). We know that if the price effect associated with an increase in output exceeds t..
Your textbook modifies the four assumptions for the multiple regression model by adding a new assumption. This represents an extension of the cross-sectional data case, where errors are uncorrelated across entities.
the pilots will receive options to buy 14 million shares of the firm's stock over the next 10 years. What impact do you think this new contract will have on Southwest Airlines?
AMS recently instituted an in-house recycling program. Profits of this program include not only profits to environment of recycling. Illustrate what level of Q maximizes profit of recycling.
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