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The solution to International trade
1. Suppose we refused to sell goods to any country that reduced or halted its exports to us. Who would benefit and who would lose from such retaliation? Can you suggest alternative ways to ensure import supplies? Are there any particular imported commodities that you or your firm rely on? What has happened to the supply of these imports over the years?
2. Domestic producers often base their claim for import protection in the fact that workers in country X are paid substandard wages. Is this a valid argument for protection? Can you give examples of when it did/did not work? Is there any trade restriction that the US government could impose that would have a negative/positive impact on your organization? Explain.
3. How do efficiency techniques differ in the short- versus long-run when attempting to maximize profits? What specific incentives are used in your workplace to promote efficiency? What conflicts may exist between a firm's desire to maximize profits and its ethical obligations? Can you give an example from your place of work?
you select to work more hours or fewer when offered a higher hourly salary.
Compute the price-cost margin for every firm and indicate which has more pricing power and why.
Calculation problems should be proven by showing the process you used or the formula you applied to solve the problem.
Competition seems to be so fierce among the giant retailers, after discounting and lower profit margins, how is profitability possible.
Changes in government spending and interest rates
Suppose a monopolistic competitor in long-run equilibrium has a constant marginal cost of $6 and faces the demand curve given in the following table:
Elucidate why does the Fed like to fight inflation in our economy and is inflation a concern right now given our current economic situation.
Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."
Illustrate what price-quantity combination maximizes your firm's profits. What price-quantity combination maximizes revenue.
Explain how are people worse off when the price level rises as fast as their incomes
Estimate the own price-elasticity of demand.
Starting with the reaction functions of duopolists Cournot solution algebraically.
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