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Suppose that the domestic demand and supply for shoes in a small open economy are given by
P= 100 - 2Q(demand)
a¬ P = 4 + Q(supply)
Where P denotes price and Q denotes quantity.
A. what will the levels of production and consumption be under free trade?
B. Will the country be an exporter or importer if the world price is $50? How much will it want to trade?
C. Suppose that the local government imposes a tax of $5 per unit of the quantity traded of this product. What will happen to the production, consumption, and trade levels of this product?
D. What will the welfare costs of this policy be?
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At present current business how do changes in macro environment effect individual companies and industries through microeconomic factors of demand, production, cost, and profitability?
the demand function for einstein bagels has been estimated as followsqx -15.87 - 40.73px 84.17py 0.55axwhere qx
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ome workers in the economy are paid a flat salary and some are paid by commission. Which of compensation scheme would require more monitoring by supervisors In which case do firms have an incentive to pay more than the equilibrium level
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Consider a monopoly where the demand is given by Q = 25 - .5P, Total costs for this monopolist are estimated to be C(Q) = 100 + 2Q + Q2. What is the profit – maximizing output? What is the monopoly profit?
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