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Suppose that Congress imposes a tariff on imported autos to protect the U.S. auto industry from foreign competition. Assume that the United States is a price taker in the world auto market. The following graph shows the U.S. auto market, the world price before the tariff ( ), and the world price after the tariff ( ).
If you were a manager in a company that operates in many countries, what criteria would you use to determine whether an application should be developed as a global application or as a local application?
Assume that there are 10 million workers in Canada also that each of these workers can manufacture
Identify which of the following are discrete decisions and which are extent decisions and provide explanation. What discount should be given on products during the upcoming holiday sale? How should you do it? How should the profit generated from the ..
Monetary policy tools used by the Federal Reserve (Fed) today do NOT include
Explain how much should firm produce in order to maximize profit. Illustrate what is maximum profit that firm can generate at output level (your answer in a).
At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve crosses the ..
A firm pays a wage of $40 per hour to 25 unskilled workers, $60 to semi-skilled workers, and $80 to 10 skilled workers. Find the weighted average wage paid by the firm.
Throughout much of the 1970s, the United States experienced rising energy prices. Assume that the US economy was in long-run equilibrium before these increases began. Use the aggregate demand- aggregate supply model to illustrate graphically the shoc..
Now assume that production technology improves such that average total costs decline by $5 a unit. Describe the process this industry will go through as it moves to a new long-run equilibrium.
Galvanized Products is considering the purchase of a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $100,000. Galvanized Products is planning to borrow 1/4th of the purchase price from a ban..
Suppose that the production function for iPods is Q = 20K^0.5L^0.5. The marginal product of labor is 10(K/L)^0.5, and the marginal product of capital is 10(L/K)^0.5. Suppose that labor can be hired for $6, and capital can be rented for $9. If the fir..
The government often strictly regulates noise and chemical pollution by industry to overcome which market failure?
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