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Based on heckscher online theorem. As a labor abundant country exports the labor intensive good X and imports the capital intensive good y from a capital abundant country.
A. Wage difference between the two countries narrow
B. Difference in returns to capital between the two countries narrow
C. Price difference in good X in the two countries narrow
D. Price difference in good y on the two countries narrow
E. All of above
Explain the relationship between MR and MC at the profit-maximizing output. Also discuss the relationship between Price and Marginal Cost and price elasticity of demand. Is this level of output economically efficient?
The value of cross price elasticity of demand between goods A and B is 0.75, while the cross price elasticity of demand between goods A and C is -1.38. Characterize A & B and A & C as substitutes or complements. Explain why this is the case.
Write a formula for the IS curve, showing Y as a function of r alone. Write a formula for the LM curve, showing Y as a function of r alone. What are the short-run equilibrium values Y , r, Y d, C, I, S, Spub, and national saving?
The world Trade organization either a. requires members to charge the same prices on goods traded internationally or b. requires members to reduce tariffs and eliminate non tariff barriers?
A paragraph or so, explain the differences between the public debt and the government budget deficit. Explain how deficit spending could be a burden to future generations.
Suppose that a company has a fixed proportions production function that requires it to use two machines and one worker to produce 1000 units per hour. Explain why the cost per hour of producing 1000 units is 2v+w (where v is the hourly rent for the m..
Can you name some well known firms that we have heard about recently going out of business? What names come to mind? Some of the market structures we have seen are not realistic and some are realistic can you tell me more about it. How is that ? Why ..
XYZ Co. manufactures bicycles. Demand for this year’s model is expected to occur at a constant annual rate of 7200 items. One bicycle costs $245. The holding cost is based on a 11% annual rate, and production setup costs are $340. Use the production ..
Explain how convinced are you that the new 30-gallon trash bag is the strongest such bag on the market.
Jacob consumes 2 goods, coffee and cigarettes, 3 cigarettes can be traded for 1 cup of coffee in a free market, or 1 cup of coffee can be traded for 3 cigarettes, Jacob initially has 12 cigarettes and 5 cups of coffee. Find an equation that gives eve..
How do you recover an investment when the residual value is significantly less than the loan value.
what will be the value of the lost revenue after a 3-year period at an interest rate of 11.940397% per year, compounded continuously?
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