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Much of the demand for U.S. agricultural output has come from other countries. From Example 2.4, total demand is Q = 3244 - 283P. In addition, we are told that domestic demand is
QD = 1700 - 107P.
Domestic supply is Qs = 1944 + 207P. Suppose the export demand for wheat falls by 40 percent.
a. US. farmers are concerned about this drop in export demand. What happens to the free-market price of wheat in the United States? Do the farmers have much reason to worry?
b. Now, suppose the U.s. government wants to buy enough wheat to raise the price to $350 per bushel With this drop in export demand, how much wheat would the government have to buy? How much would this cost the government?
Compute the marginal profit function and what is the profit maximizing price, what is the market demand function and what is each firm's supply function?
The demand curve for the product X is given by Qdx = 460 - 4Px. How much consumer surplus do consumers receive when Px = $35?
Why is there a limit to capital deepening? What roll does government play in economic growth? Why might education, foreign aid, infusion of new machinery, and efforts to stem population growth not imroved the standard of living in a lot of develop..
The Gap pursues a segmented market strategy with three main tiers of retail clothing stores: Gap, Banana Republic, and Old Navy. Is this strategy enhancing the competitive positioning of the parent company Is it increasing the cost and lowering th..
Identify the market structure(s) for the products listed Is advertising is associated with the identified market structure(s). If so, explain why advertising and/or product differentiation is important to this particular market structure.
What are the key points in short run production functions that delineate the three stages of production?Explain the relationship between the law of diminishing return and three stages of production.
by Richard Easterlin, the level of per capita income achieved in the South after the Civil War remained considerably below that in the rest of the nation as late as 1930. Evaluate the hypotheses that have been suggested to explain the poor econo..
Determine whether a permanent increase in the size of the labor force and an improvement in technology, other things held constant, would lead to an increase, a decrease, or no change in long-run aggregate supply
An investor sells a stock short for $36 a share. A year later the investor cover the position at $30 a share.now assume the price is at $42 when the investor closes the position?
What would be the equilibrium quantity and equilibrium price? Assume the Government imposes a $5 per unit tax on the seller, which equation would be affected and how?
Compute the profit maximization level of activity. Compute total revenue, total cot and profit or loss at profit maximization level of activity. Compute elasticity of demand at profit maximization. Compute the breakeven level of activity.
How did the market structure in which the firm competes affect the firm’s decision-making? If the market structure was not a factor, how do you believe it should have been incorporated into the strategic decision-making process?
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