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Diamond/Water
Early Classical economists found the following "diamond/water" paradox perplexing: "Why is water, which is so useful and so necessary, so cheap, when diamonds, which are so relatively unnecessary, are so expensive?" In modern economic terms, explain the water/diamond paradox.
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Graph the isoquant that these calculations imply. Explain in very clear and complete terms why the isoquant has the shape that you observe.
Attorneys for Eastman Kodak argued in front of the U.S. Supreme Court to defend the company against charges levied by several independent firms that provide service for machine sold by Eastman Kodak.
Is this type of bonus structure in the interest of the company? Use theoretical and graphical insights from chapter five of the textbook to explain your reasoning.
Which country is capital abundant according to the Heckscher-Ohlin theorem? Given your answer to (a), draw the PPF for Canada. Also draw the indifference curve and the relative price line for the no-trade equilibrium.
True/False: For each of the following concepts, decide whether it's true or false, and briefly explain why (2-3 sentences). You can also use diagrams if they are helpful. Each correct answer is worth.
You are planning a short-run production function for your firm, and you have collected the following data on labour usage and output: Calculate estimates of total. Average, and marginal products when the firm employs 23 workers
A construction manager earns $70,000 every year working for a regional home builder decided to open his own home building company.
Analyze the factors that influence the banks desired excess reserve ratio, r e . What would happen to the magnitude of r e if:
Explain how much should the firm charge to earn the maximum profit during off peak times.
Depends on the data above, describe why public health officials generally advocate the use of cigarette taxes to reduce teenage smoking.
Compute the AE function and plot it in diagram. What is total autonomous expenditure? What is slope of the AE function?
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