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The next three questions refer to the graph below. (Assume that the premigration labor force in country A is a and that it is h in country
B.) Explain your answers with reference to areas in the graph (1, 2, etc.) or to letters (a, b, c, etc.).
(a) What will happen to wage rates in country A and country B because of the migration of labor from country B to country A?
(b) What will happen to domestic output in country A and country B after immigration?
(c) What will happen to world output given the experience in these two nations?
Suppose that you agree with the 16-percent rate of return proposed by the company. What factors need to be considered when setting rates designed to achieve this factor?
Identify the fallacy in the following discussion: "The effect of an excise tax on a commodity might seem at 1st sight to increase the value that buyer pay.
What is the total product function for Dimex? The average product function? The marginal product function?
Discuss and explain the major barriers to entry into a industry. Describe how each barrier can foster monopoly or oligopoly.
What is an "oligopoly" and why do they exist? Mention three or four oligopolies whose products you own or regularly purchase.
Assume a company has the following demand equation, Q = 1,000 - 3,000P + 10A, where Q = quantity demanded, P = product value, and A = advertising expenditures
What are the advantages and disadvantages of the oligopolistic structure? How would an increase in a monopolist's fixed costs affect its profit-maximizing choice of price and quantity?
The demand for personal computers can be characterized by following point elasticity = -5, cross-price elasticity with software = -4, and income elasticity = 2.5. Indicate whether each of following statements is true or false, and describe your an..
Assume an airline flying on the New York - Chicago route has estimated the demand curves for three different types of customers: business (no advance purchase), leisure (7 day advance purchase), and discount (14 day advance purchase) travelers.
Assume that someone told you that an increase in price of DVD players caused the decrease in demand for DVDs. Is this what you would predict? Why or why not?
You've been asked to apply your decision-making skills and analysis to the merchandising of JMI's travel product stores. Much of the floor display space is taken up by innovations department. Describe the type of accounting quantitative data you wi..
The government adopts a tax increase and cuts spending to reduce the budget deficit and the government adopts a "fiscal stimulus" by increasing its spending on infrastructure
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