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What are the major theoretical rationales behind the ISI (import substitution industrialization) strategy? How do you evaluate its success and/or failure? What developments were responsible for its termination in most Third World countries?
A seafood restaurant in a beach resort town has a fixed (unavoidable) cost of $1,000 per month and variable (avoidable) costs of another $1,000 per month.
If the product price is $105, at its optimal output will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show all calculations.
Firms A and B each produce 100 units of pollution. Firm A has a marginal cost of pollution reduction of MCA= 10+2QA. Firm B has a marginal cost of pollution reduction of MCB=3QB. The marginal benefit of pollution reduction is $150 per unit. What is t..
A monopolist faces a price function given by P = z(36 - 2Q), where P is price, Q is total output and z is the quality of product sold, which can take on only two values. The monopolist can choose between a low quality product z = 1 or a high-quality ..
q1. why does a profit-maximizing firm hire workers up to the point where the wage equals the value of marginal product?
If in an economy a $120 billion increase in consumption spending creates $120 billion of new income in the first round of the multiplier process.
Show that a monopolist always advertises too much when measured by the yardstick of the preadvertising tastes. Show that the result also holds when measured by the yardstick of postadvertising tastes.
Explain how do I draw a production possibilities curve for 2 products in an economy if a natural disaster affects one but not the other.
Using this demand function, find the total revenue function. What is the shape of the total revenue function.
Delta Airlines experienced huge losses for several years in the early 2000’s, yet it continued to operate its fleets. Why didn’t Delta shut down its operations to further avoid losses?
The maintenance on a machine is expected to be $155 at the end of the first year, and increasing $35 each year for the following seven years. What present sum of money would need to be set aside now to pay the maintenance for the eight-year period? A..
Mr.A makes $50,000 a year and pays $10,000 in taxes. Ms.B makes $30,000 a year and pays $6,000 in taxes. Find the tax rate and after tax income for each of them. Identify what type of tax this is. Consumption is $6 trillion, investment is $2 trilion ..
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