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Italy and France both have the resources to produce bread and wine. If Italy devoted all of its resources to either product, it could produce 150 gallons of wine or 600 loaves of bread in a given month. If France devoted all of its resources to either product, it could produce 200 gallons of wine or 1000 loaves of bread in a given month.
a. Draw a production possibility curve for each country, assuming that there are constant opportunity costs in producing the two goods. (It does not matter which good you put on which axis.)
Jay Wechsler agrees to purchase a car from a local dealer, the Con Car Co. The purchase price is $15,000. Jay has the cash to pay the entire amount and wants to do so. Con's sales manager ises the following argument to convince him to finance the car..
Consider a Bertrand model, but where the firms have different costs. Specifically, suppose that firm 1 has a marginal cost of $0.90 per unit and firm 2 has a marginal cost of $1.00 per unit. Prices must be named in increments of $0.01.
Elucidate exactly Illustrate what the government actually did and why this merger is not occurring.
In describing confidence intervals on a mean, z and t intervals are frequently mentioned. How are z and t confidence intervals different? Choose one interval and give an example of how it could be applied within an operations or production environmen..
Indicate whether each statement below is positive or normative. Briefly explain each answer. As a society we should cut pollution by 5% to preserve nature for future generations. The larger a country is it will have a higher GDP (Gross Domestic Produ..
Using the consumer buying matrix p 256, analyze a consumer purchase you plan to make sometime in the future. What factors affected the selection of the attributes and weights you chose for this purchase analysis?
Semi-Salt Industries began its operation in 1975 also remains the only industry in the world which produces also sells commercial-grade poly glutamate.
Consider the Solow model without technological progress (A= 1). The production function is given by y=k1/2, the savings rate is 30%, the population growth rate is 2% and the depreciation rate is 10%. What are the long run levels of capital, income an..
Price ceiling is the law that sets a maximum price below the equilibrium market price, but a price floor is the law that sets a maximum price above the market equilibrium price.
You owe $350 a month on a 5 year car loan financed at %6 per month compounded monthly. What is the single amount value the dealer receives at the end of the loan?
Consider an industry with inverse demand: p (y) = 90 − y where y denotes industry output. There are two firms: firm 1 is the incumbent firm and firm 2 is the potential entrant. Firm 1 can adopt one of two technologies. Suppose firm 1 adopts technolog..
Can you identify the consequences of a strong dollar or a weak dollar in the United States? Which direction do you prefer for the overall health of the American economy? Should the U.S. take measure to ensure that the dollar retains its dominant role..
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