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In principle, the benefits of international trade to a country exceed the costs, no matter whether the country is importing or exporting. In practice, it is not always possible to compensate the losers in a country, for example, workers who lose their jobs due to foreign imports. In your opinion, does that mean that trade should be inhibited to prevent the losses?
Import Duty-1000 Excise Duty-1000 Outpout sold- 5000 Price per unit of output- 6 Change in stock-600 Intermediate Cost- 16,000 Subsidy-500
b. If the government establishes a price floor of $9, explain what will result in terms of excess demand or supply. c. If the government establishes a price ceiling of $6, explain what will result in terms of excess demand or supply.
The MorTex Company assembles garments entirely by hand even though a textile machine exist that can assemble garments faster that a human can. Workers cost $50 per day, and each additional laborer can produce 200 more units per day
In March of year 0, Molly begins building a barn that she will use for a horse stable business. This barn costs $43,000 plus $7,000 for earthwork to make it usable, and is placed into service in May of year 0. She also buys a tractor for this busines..
Consider the following version of the "chain store paradox". This entry game has the following timing: In the first stage an entrant decides whether or not to enter. In the second stage, if there is entry, the incumbent decides whether or not to p..
The annual operating and maintenance costs for the machine are $15,000 at the end of the first year and are expected to increase at an annual rate of 2.5% in constant dollars. The salvage value is given by the expression S= $95,000-$5,000t.
Citgo Petroleum Corporation's frequent filler programs awards 2 free gallons of gasoline after the purchase of 10 gallons. A gallon costs $3.00. Given that information, evaluate the following statement: Citgo would have the same effect on demand by..
A company deposits 2000 in the bank at the end of every year for 10 years. The company makes no deposits during the subsequent 5 years. If the bank pays 8% intereest, how much would be in the account at the end of 15 years
A monopolist with marginal cost c faces inverse demand function P(Q) = A- BQ, where 0 0. a. Calculate the competitive level of output. b. Calculate the monopoly price and output. Illustrate the monopoly equilibrium graphically.
MUA is the marginal utility of agriculture consumption and MUM is the marginal utility of manufacturing consumption. Use the condition that MUA/MUM = PA/PM, together with the fact that the total value of country's consumption must equal the total ..
Suppose a firm is producing concrete with the Cobb Douglas production function: c = s0.4g0.6 c = pounds of concrete, s = pounds of cement, g = pounds of gravel it wants to produce 10,000 pounds of concrete. Concrete is $10/pound and gravel is $2/poun..
If an investor deposits $1000 now, $3000 three years from now, and $600 per year for 5 years starting 4 years from now, how much money can be withdrawn every year forever beginning 12 years from now, if the rate of return on the investment is 8%.
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