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Comparative statics in Solow's Model
Explain how the following events affect output, capital and consumption per unit of labor in the long run and along the transition according to Solow's Model:
a) The destruction of 30% of the capital stock because of a natural disaster.
b) A permanent increase in the immigration rate.
c) A permanent increase in the labor market participation rate.
d) A permanent increase in the depreciation rate.
e) A temporal increase in the savings rate.
f) A permanent increase in the savings rate.
They face a straight market demand curve that runs from $500 on the price axis to 1000 on the quantity axis.How much profit will they make at that quantity? Why is this firm a natural monopolist?
Assume 3 firms, A,B, and C, compete for market share via quantity competition. Assume all firms have the same constant marginal costs cA = cB = cC = 1 and that market demand is given by D(p) = 101 minus p. Solve for the unique N.E.
What factors might account for the increase in the earnings of college-educated workers vis-vis high school graduates and dropouts over the last three decades?
Given the costs of production and market-structure characteristics, analyze how the dem functions under (a) perfect completion and (b) imperfect competition. They will each drive a different approach for maximizing profit and allocation of resources.
Research one case of trade restriction, implemented by any nation. Research your topic, using at least 2 sources, and write a brief report (approximately 2 pages) on your findings. Scoring Guide-International Economics, Scoring Standard
A seller is willing to sell a product only if the seller receives a price that is at least as great as the...
A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The company forecasts that the revenue will be $190 million in the first year, but will decline by $2 million every year for the next 3..
Draw the market supply and market demand in one graph. Next to it, draw the situation of one firm, with the average total cost, the marginal cost, and the price (which under perfect competition is the marginal revenue).
q.due to the global economic slowdown we were benefiting from relatively low oil prices. but because of the instability
What would be the equilibrium price? What is the equilibrium quantity? Calculate the deadweight loss created by the tax.
The price elasticity of demand is -1.2. What type of elasticity is this?
Illustrate why does the GDP deflator give a different rate of inflation than does the CPI. Illustrate what is the difference between a medium of exchange and a store of value.
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