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Suppose there are two goods being produced in the economy: robots and wheat. Robots are a capital intensive good and wheat is a labor intensive good. Suppose that there are two countries: France and Brazil. France is capital abundant and Brazil is labor abundant. Using two graphs (one per country) draw the international trade equilibrium for this two country world economy based on the Heckscher-Ohlin model.
Suppose that the demand curve (hundreds) for apples is given by Qd = 140 - 5P, where Qd is the number of pounds demanded per year and p is the price per pound. The supply of apples can be described by Qs = 40 + 5P, where Qs is the number of pounds pr..
Explain why the food stamp program can have the same effect on the consumption pattern and well-being of recipients as an outright.
Suppose that Coca-Cola is currently paying a dividend of $1.75 per share, the dividend is expected to grow at a rate of 5% per year, and the rate of return investors require to buy Coca-Cola’s stock is 8%. Calculate the price per share for Coca-Cola’..
Elucidate how Coldwell Banker can produce the same output at a lower total cost
Elucidate how might firms "avoid" experiencing diseconomies of scale also illustrate what does the long-run average cost curve look like when diseconomies of scale exist?
Compute equilbribrium outcome for a firm that has ten workers, one of who is the owner who manages the firm. The firm's net income(net of the cost of materials, etc) is always five times the total amount of effort contributed.
If the monopolist is operating in the inelastic range of demand,
Home and Foreign both produce cars and food using labor and capital. In each country, labor and capital are both freely mobile across industries. It takes 5 units of labor and 3 units of capital to produce 1 unit of food, and 4 units of labor and 4 u..
One month ago, they added five workers, and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they buy another copier or hire another worker?
First assume that each lawyer will pay his own bill. Describe their decision making process as a normal form game (describe the payoff matrix). Identify the Nash equilibrium or equilibria. Do you think that the Nash equilibrium or equilibria is a rea..
Where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yards sold per year. Suppose that Kalamazoo's marginal cost is $20 per cubic yard and its avoidable fixed cost is $100,000 per year. what is its profit-maximiz..
Suppose the market price of tuna is $3.50/pound. Explain how many fisherman should the company use if the daily wage rate is $100.
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