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Q1. Consider the information you have read this week on International trade and specifically regarding the domestic employment disagreement, supply your opinion on how U.S. jobs can be eliminated or increased by comparing and contrasting viewpoints. Support your responses with current creditable resources.
Q2. Here are two firms in the blastopheme industry. Demand curve for blastophemes is specified by p = 4,500 - 4q. Each firm has one manufacturing plant and each firm i has a cost function C(qi) = q2i, where qi is the output of firm i. The 2 firms form a cartel & arrange to split total industry profits equally. Under this cartel arrangement, they will maximize joint profits. Explain?
What is the social optimum quantity and price. Calculate the total surplus in the market equilibrium, at the social optimum and with the tax.
Calculate whole expected convenience from each restaurant option and also compare?
Assume that during the last month of the tenth year of ownership, the property in Problem 2 is sold for 1,500,000. Assume also that the seller incurs transaction costs equalling 6 % of the sales price.
Mustard and mayonnaise are substitutes. Mustard and relish are complements. Mustard is a normal good. During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.
The production process requires labor and capital as inputs. Labor costs $6 per labor hour and capital costs $12 per machine hour.
Illustrate and explain the movement of the aggregate demand and aggregate supply curve both in the short and long run.
An upward or downward movement along a given demand curve or involves an outward or inward shift in the relevant demand curve for housing.
If one draws MC curves pre and post innovation as well as the Marginal Revenue line for a monopoly and the MR in a competitive situation.
At a separating perfect Bayes-Nash equilibrium, what is the maximum amount of advertising that a restaurant conducts. What is the minimum amount.
Expectations and consumer confidence are important in determining fluctuations in aggregate spending. In your opinion, what is the present status of consumer confidence.
Consider a product market for a normal good. Suppose consumers' income increases. Explain what will happen to labor demand for firms in that market.
How would a downward change in the money supply affect you personally. How would it affect your career. What impact would rational expectations have on your decisions in this situation.
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