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Japanese labor productivity is roughly the same as that of the United States in the manufacturing sector (higher in some industries, lower in others), while the United States is still considerably more productive in the service sector. But most services are non-traded. Some analysts have argued that this poses a problem for the United States, because our comparative advantage lies in things we cannot sell on world markets. What is wrong with this argument?
A toll bridge across Mississipi River is being considered as a replacement for the current I-40 linking Tennessee to Arkansas. Because this bridge, if approved, will become a part of the U.S. Interstate highway system, the B-C ratio
Suppose that an initial $40 billion increase in investment spending expands GDP by $40 billion in the first round of the multiplier process. If GDP and consumption both rise by $36 billion in the second round of the process, what is the MPC in thi..
For both sets of calculations, compare the firm's output price and the calculated average variable cost and average total cost. Should the firm shutdown immediately when the total fixed cost equals $1,000,000
Suppse a consumer utility derived from consuming banana is described by the function U=10X+3X^2-(1/3)X^3. Compute marginal utility. a. Make a table showing total and marginal utility for X from 0 to 7 units. b. Would this individual ever choose to c..
A firm sells its product in a perfectly competitive market where other firm charges a price of $40 per unit. The firm's total costs are C(Q) = 40 + 8Q + 2Q2. a. How much should the firm produce in the short run b. What price should the firm charge i..
A retail store faces a demand equation for Roller Blades given by: Q= 180-1.5P where Q is the number of pairs sold per month and P is the price per pair in dollars. a. The store currently charges P =$80 per pair. At this price, determine the number..
A local video store estimates their average customer's demand per year is Q = 7 -2P, and knows the marginal cost of each rental is $0.5. How much should the store charge for each rental if it engages in optimal two part pricing
What can you conclude about the data? What are some implications for health care professionals regarding the performance of hospitals in this state in the period from 2001 through 2005? Provide your rationale
Stephen Zehnder, an enterprising engineer, wants to get into business. He is looking at the following two alternatives. He has compiled the cost data for both alternatives as shown in table below. If Stephen wants to have at least a rate of return..
When might it be a bad idea to use the PPP theory in this way?
Write an equation that summarizes the cost function for her operation, as well as equations that summarize the marginal, average variable, average fixed, and average total costs of selling fresh drinking water at the kiosk.
Within Japan, the market value of all the final goods and services produced by Americans is $50 billion, and the market value of all the final goods and services produced by Japanese is $100 billion. what is the GDP of Japan
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