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Impact of subsidy and shift of facility on
Where I can I find answers to the following and what are the references where I can get the answers?
1. Explain why the U.S. would subsidize the short run costs of production for tobacco farmers in foreign countries? Do these practies guarantee the tobacco farmers a profit in the short run? Explain
2. How does theis practice shift the equilibriums (price and output) for tobacco and domestic food items (analyze both the local and international effects?
3. what are the production gains to the entire company of Amce in Nuevo Laredo and why do they make engine in Laredo than the whole auto?
4. Why would Acme Motors shift its production of engines from Detriot to Mexico and then shift the engines back to the U.S. to be assembled into the finsihed auto?
5. What are the gains and losses for consumers in these types of international production and trading pattterns? Analyze short-run and long runs costs.
Shelly's preferences for consumption and leisure can be expressed as. This utility function implies that shelly's marginal utility of leisure is C-200 and her marginal utility of consumption is L-80.
Assume a indiidual has $8 to spend only on apples and bananas.
Explain how can you go about finding L, normally it is either the budget constraint and utility functions slopes are equivalent,
A perfectly competitive firm should hire an additional worker only if the employee 's marginal revenue product is less than the wage rate.
Explain how does each of the following affect the aggregate demand curve?
In Bayonne, New Jersey, there is a large beauty salon and a number of smaller ones. The total demand function for hair styling per day is Q=180-10P, where P is in dollars.
"Most of the firms spend considerable amounts of money on advertisement". Explain advertising elasticity of demand and its practical applications in this context.
Imagine that the firm must choose one of three quality levels: z = 1; z=2; and z = 3. Which quality choice will maximize the firm's profit?
Explain how does the increase in the after-tax price depend on the price elasticity of demand
For an unknown reason, aliens kidnapped all immigrants residing in the US. One morning America wakes up and finds that the only people left in the country are American citizens, while all legal and illegal immigrants are gone.
Draw a bowed-out production possibilities curve (PPC or PPF) with an aggregate measure of medical services, Q, on the horizontal axis and an aggregate measure of all other goods (and services), Z, on the vertical axis.
Many home improvement retailers like Home Depot and lowes have low-price guarantee polices. Do these types of pricing strategies result in cutthroat competition and zero economic profits?
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