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Suppose that Portugal and Austria both produce rye and cheese. Portugal's opportunity cost of producing a pound of cheese is 5 bushels of rye while Austria's opportunity cost of producing a pound of cheese is 10 bushels of rye.
Assume that the market demand for broccoli is given through Q=1000-5P and the market supply of broccoli is given through Q=4P-80 where Q is quantity per year measured in hundreds of bushels
The Haas Corporation's executive vice president circulates a memo to the firm's top management in which he argues for a reduction in the price of the firm's product. He says such a price cut will increase the firm's sales and profits.
The EPA is considering new regulations to reduce mercury emissions from power plants. Rank the following policies in order of how well they encourage electricity producers to innovate and design cheaper ways to reduce mercury. [Assume technolo..
Assume initially that the demand and supply for premium coffees (one-pound bags) are in equilibrium. Now assume Starbucks introduces the world to premium blends, and so demand rises substantially. Describe what will happen in this market as it mo..
1. explain the concept of returns to scale as it applies to electronic commerce and physical businesses.2. what is a
how is an aggregate demand curve derived? what would cause the aggregate demand curve to shift to the right? explain
In imperfect competition, labour markets can lead to worker exploitation in terms of their wage rates they receive compared with wage rates in perfect competition. Discuss this opinion.
Explain why government regulation is needed, citing the major reasons for government involvement in a market economy and justify the rationale for the intervention of government in the market process in the U.S.
ConsiderTable 632 in the 2008 U.S. Statistical Abstract.
In 2009 - 2010, the quantity of cars produced and sold decreased by 20%. Through the same period, the price of cars increased by 5% and the cost of gasoline increased by 20%. We know that the cross elasticity of demand of gasoline is -0.3. Calculate ..
economist joseph schumpeter who taught at harvard from 1932 until his death in 1950 popularized the term creative
One characteristic of automatic fiscal policy is that it...
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