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What is intra-industry trade and how is it affected by economies of scale, differentiated products, and vertical foreign direct investment? Explain.
What should have happened to their real wage. Given a constant MPL, barbers should have experienced no wage change. D. In what units is real wage in part.
What would the following contracts look like on a graph where the total income is on the horizontal axis and the number of tasks is on the vertical axis?
Which of the following would not occur as a result of a monopolistically competitive firm suffering a short-run economic loss?
You are a division manager at Toyota. If your marketing department estimates that the semi annual demand for the Highlander is Q=150,000-1.5P, what price should you charge in order to maximize revenues from sales of the Highlander?
Create a table showing total production for the two countries with no trade. Create a table that assumes total specialization. What is the effect on total production? What are the two extreme (relative) prices that are possible for trade in this situ..
What are the characteristics of a PC firm? Using Hot Dogs, Graph the market and the individual supply, demand and costs for Hot dogs side by side. Make sure to include the S.R. and L.R profits.
Explain how large a decline in the value of bank assets would it take to reduce this bank's capital to zero.
Let us examine the market for smart phones. Assume that the inverse market demand function is given by p = 240-2Q. Initially, firm A and firm B produce at equal unit cost, c0. After investing heavily in R&D, firm A has managed to reduce its unit prod..
suppose that a big mac costs 5.00 in new york and sf30 in geneva. suppose further that the price of 1sf on that day is
Congress does not have enough votes to override a veto. Draw a tree for this game and ?nd the rollback equilibrium.
Use economic analysis to explain why the optimal amount of product safety may be less than the amount that would totally eliminate risks of accidents and deaths. Use automobiles as an example.
Opponents of NAFTA point out that pollution is largely a free good in Mexico also that being free to pollute gives industries in Mexico an economic advantage over those in the U.S. also Canada.
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