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Suppose the cost of acquiring a skill increases and the value of marginal product of skill increases. Draw demand-supply graphs of the labor markets for high-skilled and low-skilled labor to explain what happens to the equilibrium wage rate of low-skilled labor, the equilibrium wage rate of highskilled labor, and the number of high-skilled workers employed.
work will be evaluated for the clarity of the structure, the logic in the development of your argument, and the thoroughness with which you discuss the important point
What is the largest loan that the bank can make on the basis of the new deposit If the bank chooses to hold reserves of $3,000 on the new deposit, what are the excess reserves on the deposit
How might a deposit-refund system be designed to provide incentives to dispose of hazardous materials in approved ways?
Suppose Bruce Springsteen's objective in choosing whether to auction the tickets or to set a price of $100 is to maximize the market consumer surplus. Which does he choose: an auction or a $100 price
What if the net foreign debt were 100 percent of GDP? At what point do you think a country's government should become worried about the size of its foreign debt?
A monopolist faces a demand curve given by: P=220-3Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $40. There are no fixed costs of productions.
Suppose instead that the marginal mining cost increases with the amount mined. What is now the effect on gold consumption and mining of an increased use of gold as money?
a) sketch the graph, clearly labeling all parts b) what is the equilibrium price in the absence of trade c) what will be the equilibrium price with trade d) if there is a trade barrier indicated by the dataabove which best fits the situation
A factory operates in a village and employs 200 workers. The workers are willing to work for any salary. The items produced by the factory are sometimes more demanded by consumers than at other times. For this reason, the demand for workers
Plot these curves and examine the type of scale economies each firm experiences at different output levels.
Construct a variation of the rent-seeking game without the discontinuity in winning/ losing. Find the pure strategy equilibrium.
There are 2 firms in industry A. You are firm 1, and your rival is firm 2. The market demand and the firm's cost functions are as follows Demand: P=200-2(Q1+Q2) Firm 1: Tc1= 2Q1 Firm 2: Tc1=10Q2
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