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Terms of trade, TERMS OF TRADE The relation between the prices of a co...
TERMS OF TRADE The relation between the prices of a country's exports and the prices of its imports, represented arithmetically by taking the export index as a percentage of t
Explain the laws of returns to scale, Laws of returns to scale alludes to t...
Laws of returns to scale alludes to the long-run analysis of the laws of production. In the long run, output can be increased by varying all factors. So in this section we study th
Does capital inflow lower us interest rates, Basic textbook models, such as...
Basic textbook models, such as the Mundell-Fleming model, say that capital inflow happens due to the domestic interest rate being higher than the world interest rate, and therefore
Foreign exchange markets, Foreign Exchange Markets It is the place whe...
Foreign Exchange Markets It is the place where buyers and sellers meet to negotiate the exchange of different currencies e.g. forex bureaus. Exchange Rates These are
Marginal cost, Marginal Cost This is the increase in total...
Marginal Cost This is the increase in total cost resulting from the production of an extra unit of output. Thus, if TC n is the total cost of producing n
External debt problem, External Debt Problem External debt refers to d...
External Debt Problem External debt refers to debt owing by one country to another. External debt is a more serious problem than internal debt because the payment of interest
Describe models of oligopoly, Question 1: (a) Describe the argument tha...
Question 1: (a) Describe the argument that market entry erodes profits in the long run. (b) Give some reasons and discuss possible strategies used for profits to persist eve
how many push mowers will ann rent, Ann owns a lawn-mowing company. She ha...
Ann owns a lawn-mowing company. She has 400 lawns she requires to cut every week. Her weekly revenue from these 400 lawns is $20,000. Given an 18-inch-deck push mower, a laborer ca
Types of price elasticity of demand, Types of Price Elasticity of demand ...
Types of Price Elasticity of demand a) Perfectly inelastic demand Demand is said to be perfectly inelastic if changes in price have no the quantity demanded so
Time factor for determinants of demand, Q. Time Factor for Determinants of ...
Q. Time Factor for Determinants of Demand? Price-elasticity of demand depends moreover on the time that consumers take to adjust to a new price: longer the time taken, greater
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