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In the discussion of empirical results on the Heckscher-Ohlin model, we noted that recent work suggests that the efficiency of factors of production seems to differ internationally. Explain how this would affect the concept of factor-price equalization.
Wood products industry officials now claim that major mill closures over noneconomic issues occur at a rate of one every six months. Assume that this rate is accurate. a. Find the probability that no major mill closures will occur during a given ye..
graph the relationship between output and labor, holding capital constant at its current value. Find the MPN for an increase of labor from 100 to 110. Compare this result with the MPN for an increase in labor from 110 to 120. Does the marginal pro..
For both sets of calculations, compare the firm's output price and the calculated average variable cost and average total cost. Should the firm shutdown immediately when the total fixed cost equals $1,000,000
As an alternative, an automated manufacturing system will cost $13400 with a $0.65 manufacturing cost per unit. The annual anticipated volume is 4200 units. Determine the break-even point.
If the demand curve for the Kansas City Chiefs' tickets was Q= 500,000 - 200p and their marginal cost=0, then,a. How many tickets would the team be able to sell (ignoring capacity constraints) if it behaved as if it were in a competitive market? M..
An individual makes five annual deposits of $2,000 in a savings account that pays interest at a rate of 4% per year. One year after making the last deposit, the interest rate changes to 6% per year
The company's income statement indicates current profits of $15,000, which have yet to be paid out as dividends. Assuming the company will remain a "going concern" indefinitely and that the interest rate will remain constant at 6 percent,
For the economy as a whole, what percentage of firm revenue is spent on advertising?
A state meat inspector in Iowa has been given the assignment of estimating the mean net weight of packages of ground chuck labeled "3 pounds." Of course, he realizes that the weights cannot be precisely 3 pounds. A sample of 36 packages reveals th..
how many bushels of apples should the farmer produce? If the government imposes a tax on the sellers which results in the sellers receiving $1 less per bushel sold, what amount of apples should the farmer choose to produce?
Suppose that the demand for oil is given by the equation P=10 - 0.2Q where Q is the quantity of oil in barrels per day and P is the price of oil in $ per barrel. You also know that at the current price of oil of $75 per barrel, 750 barrels of oil ..
Change in the CPI inflation rate from the previous year against the cyclical unemployment rate. Discuss your results in light of the theory of the Phillips curve.
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