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Q. Assume that two countries both have per-worker production function y = k1/2, neither has population growth or technological progress, depreciation is 5 percent of capital in both countries and country A saves 10 percent of output whereas country B saves 20 percent. If A starts out with a capital-labour ratio of 4 and B starts out with a capital-labour ratio of 2, in long run:
Explain how does global economic competition impact the domestic market and decisions related to the strategy a firm uses to compete.
What can you say about the price elasticity of demand for DVD players. What will this price reduction necessarily lead to an increase in profits for DVD player manufacturers.
Analyze how a bartender would know which the price of an exotic drink was too low or too high.
Identify and briefly explain key macroeconomic issues that stand out as important to consider in business decisions.
Assume that the nation is not large enough to affect the world price. Illustrate the effects of a tariff on imports.
The rate that does aggregate output, aggregate investment, aggregate consumption as well as per- capita income grow in this steady state.
Show an expression for average cost. Derive an expression for marginal costs. Is there any range of production characterized by scale of economies.
The U.S. cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Illustrate what effect will this have on its optimal price.
At the same time some internet trades such as grocery home deliveries have continually suffered steep losses regardless of scale.
what is the approximate real rate of interest. Illustrate the exact real rate.
Using the net benefit ratio method of Deaton, please tell us whether a 10% increase in output price will increase or decrease the economic welfare of each of the following three agricultural households, by how much, and why (be sure to show your w..
Illustrate what are some of the damaging effects deflation has on an economy. Elucidate what would be a monetary policy prescription to reduce or eliminate deflation.
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