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The Internet has allowed for increased trade in services such as programming and technical support, a development that has lowered the prices of such services relative to those of manufactured goods. India in particular has been recently viewed as an "exporter" of technology-based services, an area in which the United States had been a major exporter. Using manufacturing and services as tradable goods, create a stan- dard trade model for the U.S. and Indian economies that shows how relative price declines in exportable services that lead to the "outsourcing" of services can reduce welfare in the United States and increase welfare in India.
Consider two used-car dealers: Bob’s Better Wheels and Dewey, Cheatum, and Howe Motors. Their prices are basically the same for similar vehicles even as their advertising screams that their products are different.
What are some examples of goods that the U.S. has comparative advantage in producing Take a look at the tag of the shirt/dress/pants you are wearing today. Where was it made Anyone wearing "Made in America" items of clothing today
Time Magazine and Newsweek are two competing news magazines. Suppose that each company charges the same $5.00 price for their magazines. What is the Nash equilibrium for this sequential game?
This problem uses Okun's law to study how the unemployment and inflation rates change when there are demand shocks. Assume that the relationship between the output ratio and the unemployment rate, U is given by the equation U = 6.0 - 0.5 (output ..
If the government uses its knowledge of its monopolistic position, Illustrate what criteria will it employ when determining how many soldiers to recruit. What happens if a mandatory draft is implemented.
In this model of society no capital and no wage labor. The commodities are valued based on hours of labor that needed for the production.Based the above the only input that used to find the cost of a commodity is labor.
The problem related to Economics, particularly Macroeconomics. It is deals with the indicators of economic development and the associated political risk.
A monopolist faces demand P=400-4Qd and has constant marginal cost MC=80. If this monopolist engages in first-degree price discrimination, what would consumer surplus be?
Suppose a firm operates as a price taker in a perfectly competitive industry. The firm’s Total Cost function is given by TC = a + bQ +cQ2. Therefore the firm’s marginal cost is given by b +2cQ. Find an expression for the Breakeven Price.
Suppose that the exchange rate between the Polish Zloty and the U.S. dollar is currently 4 Zls to the dollar. The one year forward rate for the Zloty is 4.5 Zls to the dollar. If U.S. inflation is 3% what is the approximate Polish inflation rate if r..
1 if c0 392 i 1192 g 779 x 386 mpc 0.97 t 0.18 and mpi 0.13 all numbers are in real terms and billions.a
Illustrate what are the benefits and drawbacks of dynamic pricing for that particular company.
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