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If free trade increases a domestic firm’s access to the global market place such that it can double all factors of production and realize a threefold increase in output, what happens to its average unit costs and its ability to compete in the global market place? Explain.
Assume that Erin now has preferences such that she prefers the cash gift. Using a separate graph from part (a), graph Erin's optimal choice before and after gift.
President Bill Clinton assigned his wife the task of developing a national health insurance plan to increase the availability of medical care for the poor. Explain how would one determine the opportunity cost of the proposal.
This deviation from the classical dichotomy and the Fisher effect is called the Mundell-Tobin effect. Explain how might you decide whether the Mundell-Tobin effect is important in practice.
Evaluating new vehicle technologies to reduce costs is important for companies like UPS also other companies involved in parcel delivery services.
How much Wyandotte have to decrease the price of polyol to attain a 15% increase in the quantity sold.
explaining the expected short-term impacts on firms in any one of the following three industries in terms of product sales; operating costs; revenues or economic profits.
Compute the price elasticity of demand for good X between the two prices on the demand curve. Describe the price elasticity of demand for good X.
Describe who bears relatively more of the burden of the tax, producers or consumers and illustrate your answer with a diagram.
Assume quantity theory of money holds with constant K and Kf. Suppose Mexico wants to stabilize the exchange rate of its currency with US dollar (dollars/peso). If Mexico has a real GDP growth rate of 6%, what is the money supply policy Mexico should..
The federal government provides a number of subsidies to the oil and gas industries. In defence of the subsidies, a spokesman for the industry observed “some alleged subsidies don’t even go to the industry.”
xpect that this strong preference for Japanese products will continue for the next decade. Explain how should this influence your decision to work and save in Japan.
What is the equation for the AS curve. What restrictions on the parameters do we need to ensure that AS curve has a positive and nite slope.
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