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A company operates plants in both the united states(where capital is relatively cheap and labor is relatively expensive) and Mexico(where labor is relatiely cheap and capital is relatively expensive).
A. Why is it unlikely that the cost-minimizing factor choice wil be identical between the two plants?
B. Under what circumstances wil the input choice be relatively similar?
The marginal damages to Community A are 1q. The marginal damages to community B are 2q.Now, two other factories start producing in the area and benefit from polluting, too. For each, the marginal benefit. two other factories start producing in the ar..
Suppose prices are determined as a simple mark-up over expected wages: p-w^e=a0-a1U Assume further that wages are a simple mark-up over expected prices: w-p^e=B0-B1U Use the equations above to show that when prices are different from price expectat..
Provide the cyclical nature of government tax revenues and spending, how would the resulting budget deficit or surplus vary over the business cycle.
1. What is the least-cost combination of labor and capital the firm should employ in producing 80 units of output? explain. 2. What is the profit-maximizing combination of labor and capital the firm should use? Explain. 3. What is the resulting level..
For example, in the United States, less than 20 percent of spending on prescription drugs was covered by health insurance in 1970. This share increased to near three-quarters by 1998. What factors account for this
Compute the price elasticity of demand.
This was the famousHundred Days of the New Deal. the days in which, half by design, half by accident, the foundation was laid for a new pattern of government relationship to the private economy, a pattern that was to spell a major change.
make the costs of compliance and non-compliance with regional trading bloc rules and regulations.
Consider two policies-a tax cut that will last for only one year and a tax cut that is expected to be permanent. 1. Which policy will stimulate greater spending by consumers 2. Which policy will have the greater impact on aggregate demand
Discuss and explain how exchange rates are determined using supply and demand. Provide some examples. Determine the current exchange rate of the United States to Japan, Canada, Germany, and Mexico currencies?
Illustrate what are possible causes of a movement up or down along the demand curve. What are possible causes of a movement up or down along the supply curve.
Tired of spending so much on clothing, Macklemore begins to shop at a thrift shop, where he "pops some tags" and is able to find clothing for as little as $2 a piece. On the graph in part (d), draw Macklemore's new budget line. Is clothing a norm..
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