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Q1. What would be the production possibility frontiers for Brazil and the United States? Without trade, the United States produces 45,000 units of clothing and 150,000 cans of soda.
Q2. A. Use the following information to calculate the value of the firm. Interest 15% and the firm is expected to grow at an annual rate of 7% (assume growth rate is constant) If the current profits of the firm are $150 million. Why is it important to discount future profits?b. Define and explain the four types of efficiencies. What role do they play in decision making?
Q3. Do you believe that profit (or shareholders wealth) maximization still represents the best overall economic objective for today's corporations?
Two firms are located on the line and sell identical products. Consumers obtain K utility from consuming a product; assume that K is large enough that all consumers purchase from at least one of the firms despite the costs of transportation.
Interior Department recently announced that it will increase the entrance fees at Yellowstone National Park in order to increase park revenues.
Explain why government regulation is or is not needed, citing the major reasons for government involvement in a market economy. Provide support for your explanation.
You read in a business magazine that computer firms are reaping high profits. Assume that the computer market is perfectly competitive.
If most businesses in an industry are earning a 13 percent rate of return on their assets, but your firm is earning 23 percent what is your rate of economic profit
Imagine that you were the president of an emerging country that is trying to reduce the number of its imports
Explain why the R-squared from the regression from F test will always be at least as large as the R-square from the BP regression.
What if the pollution invades Baker's home and harms her health
Suppose, on the other hand, that the second country retaliates with an export subsidy of its own.
What was the accounting profit for the new business. What was the economic profit or loss. Explain your calculations for both questions.
Total hours worked, and average labor productivity all are procyclical. Which variable, output or total hours worked, increases by a larger percentage in expansions falls by a larger percentage in recessions.
Outline reasons why the marginal revenue product differs between workers in different jobs.
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