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In considering the international realm, let’s consider the concept of economic treaties. Specifically, let's think about an organization like the European Union (EU). Why was it formed? In addition, what are some of the objectives of the nations that are joining the EU?
If the government were to increase taxes on gasoline, what will happen to the total government revenue? Why? What are you assuming about the elasticity of the demand curve of gasoline? What is the formula for elasticity? Would the government make mor..
What is the effect of a trade surplus? What is the effect of a trade deficit? How do trade deficits and surpluses affect the industry in which you work?
The owner of a monopoly firm which produces and sells computers hires you as the manager of the firm. He asks your opinion on how much to mark up the price over marginal cost (MC) given that the firm's objective is to maximize its profits. you is the..
The distribution of the weekly production is approximately normally distributed with a standard deviation of 60 units. If the bonus is paid on the upper 5 percent of production, the bonus will be paid on how many units or more.
George, who owns and runs Tots Poses, expects to encounter an average of eight customers per day, each with a reservation price shown in following table. What are total revenues, average revenues and marginal revenues
Explain how much does consumption change this year in absolute dollars as a result of a $5,000 annual tax cut to your income, if the tax cut.
find out that the exchange rate for your U.S. dollar has decreased relative to the euro. If you were a U.S. citizen or resident, are you pleased.
Joe and Rebecca are small-town ready-mix concrete duopolists. The market demand function is Qd = 10000 − 100P where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. What is Joe’s best response function..
Suppose you run a manufacturing business that is involved in manufacturing and selling a single product. The fixed cost to run the business is $15,000 and the constant marginal cost is $7.50 per unit. The sale price of your product is $15 per unit. F..
Describe the circumstances under which a firm chooses a low-cost strategy to attain sustainable competitive advantage. What about the situations when a differentiation strategy is chosen?
Suppose you have three producers of oil A, B, and C, with extractions costs of $8, $10, and $12 per barrel of oil. Assume there are no user costs. Assume that each well can produce 100 barrels of oil per day. How much oil will be produced if the mark..
The development of the “shadow banking” system and the deregulation of banking and finance over the last thirty years has today contributed to:
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