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According to the New York Times (11/18/06) the number of car producers in China is increasing rapidly. The newspaper reports that “China has more car brands now than the United States.” But while car sales have climbed 38% in the first three quarters of the year, automakers have increased their output even faster, causing fierce competition and a slow erosion of prices.” At the same time, Chinese consumer incomes have risen. Assume that cars are a normal good. Use a diagram of the supply and demand curves from cars in China to show what is happening. Explain verbally, too. Label and describe shifts and directions of Q and P carefully.
the european engine company eec is a multi-national manufacturer of small gasoline and diesel motors. eec has predicted
A firm uses 1 capital for every 5 workers to produce 1 output. The price of output is $75, the wage rate is $8, and the rental rate for capital is $2 per unit. Assume capital is not a fixed cost. What is the profit maximizing level of labor demand if..
Consider a Stackelberg competition with one leader and multiple followers. All products are homogeneous. Marginal cost for all firms is zero and all products are homogeneous. If the leader produces a quantity of 6 units how much would each of the oth..
Design an alternative author-compensation scheme under which the author and the publisher would pick the same price.
Why might foreign aid not reduce poverty of a developing country? Explain Three different reasons based on the foreign aid.
How might this impact stock price in the short term? How do you believe that management deals with these two sometimes competing goals?
Illustrate what are the major factors that have affected U.S. household consumption since the recession in 2001.
q1. a. in recent years abc company has requested the services listed below from blazo economic an economic
Suppose the price level and value of the U.S. dollar in year one are 1 and $1, respectively. If the price level rises to 1.20 in year two, what is the new value of the dollar?
Suppose there are two types of workers, “stars” and “everyone else” and both of them would like jobs at investment banks like SG Cowen. Productivity equals 100,000 for the stars, and 50,000 for everyone else. 80 percent of workers in the population a..
Why is depreciation of capital good a cost of society. In illustrate what ways does a person's health depreciate. Why might older people's health care expenditures increase in Grossman model even though their desired health stocks may be lower.
Illustrate what is the source of IKEA's success today. Can you see any weaknesses in the company. What might it do to correct these.
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