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Consider a two-country (Home and Foreign) two-good world (wheat and cloth). Let MPLw and MPLc be 4 and 2, respectively. Let L=25. Suppose that the number of workers doubles in Home. What happens to the Home PPF and what happens to the no-trade relative price of what?
Twin sisters Rose and Iris each have $100 to spend on flowers (X) and all other goods (Y). Flowers cost $2 each, and all other goods (AOG) have a composite price of $1 each. Assume that their preferences are represented by convex indifference curves...
Suppose a small community of 200 people want to save a rare Toad. Each person has a willingness-to-pay function of P = 2.5 -2.0Q, where P is the per-Toad price that she or he is willing to pay to save Q rare Toads. To save a Toad, they must capture i..
Elucidate how the investor's curves would appear if she adopts the 50:50 strategies but would not accept any additional return.
In the absence of a binding and enforceable agreement, determine the dominant strategy for AMC. c. Determine the dominant strategy for SAMI. d. If the two firms can enter into a binding and enforceable agreement, determine the strategy that each fi..
Brazil has a population of about 200 million, with about 145 million over the age of 15. Of these, an estimated 25 percent, or 35 million people, are functionally illiterate. Which of the following best explains the implications of Brazil’s literacy ..
Wagner Industries preferred stock has a par value of $50 and a stated dividend rate of 6.0%. This means that Wagner will pay $3.00 (6% x $50) in dividends per share, per year forever. There will never be an increase or decrease in the dividend. Suppo..
why do you think drug companies spend so much on advertising for drugs they have a patent on (essentially giving them monopoly power) but so little on drugs with an expired patent when generic alternatives are available
Regarding Advertising Bans: Assume the government imposes an advertising ban on a monopoly firm. How will this affect the firm’s total cost of production? Would your answer be the same if the government imposed a ban on the firm’s use of labor? Expla..
In Winona, a gallon of gasoline at Kwik trip sells for $2.279. In the east end of Rochester, Kwik trip sells gasoline for $2.179 per gallon. Using demand and supply curves, explain the price differential between the two ends of Rochester. Is this d..
Explain the 4 ways the Federal Reserve would increase the money Supply and explain and graph how this would impact interest rates, consumption, and investment, AD, GDP, Prices and Unemployment. (Make sure to include both the money and the goods graph..
Illustrat what are the advantages of using capital in the production process. What is meant by the term "division of labor".
AOL, LCC, mistakenly made public and personal information of 650,000 of its members. The members filed a suit, alleging violations of California law. California courts have declared in other cases that the AOL clause contravenes a strong public poli..
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