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1. Explain graphically how isoquant-isocost analysis can be used to derive a long-run labor demand curve. Distinguish between the substitution and output effects.
2. How might a wage differential between two regions be reduced via movements of capital to the low-wage area?
Illustrate what is the effect of Westland's expansionary monetary policy on Eastland's nominal exchange rate in the short run also in the long run.
Suppose that inverse demand is given by D(Q) = 56 − 2Q, Q = q1 + q2 and the cost function is TC(qi ) = 20qi + f (a) Find the limit output for fixed costs ( f ) equal to 50, 32, 18, and 2. (b) What is the SPNE for the entry game with the following tim..
Taiwan’s farmers have a very good harvest of bananas this year. How does it affect the total revenue of the farmers in Taiwan? Explain your answer with a diagram. After buying the bananas from Taiwan, Beijing sells them in the mainland (domestic) mar..
Newspaper vending machines are designed so that once you have paid for one paper; you have access to all the papers in the machine and could take multiple papers at a time. However, other vending machines dispense only one item (the item you bought)...
Will the sales force and warehouse manager maximize ports.
Find out the ticket price that maximizes revenue. Find the profit-maximizing expenditure on players and the profit-maximizing fraction of games to win.
A market with barriers to entry may not be characterized by production at the minimum ecient scale in the long run. The Diamond-Mortensen-Pissarides model successfully explains the phenomenon of unemployment, while competitive market models ( earlier..
A company bought a machine with an initial value of $120,000 with life time of 8 years and a salvage value of $12,000, assuming ? =0.60 find the book value at year six using the declining method.
What is the effect of bad weather for farming or some other temporary decrease in the availability of raw materials?
Micro media offer computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the particular activity that the instructor is presenting. Micro media is currently planning a two-day seminar ..
When other companies refused to follow the increase, American Airlines made an attempt to gain customers in the competitors' markets by applying aggressive discounts on the tariffs.
Choose a country and retrieve the latest data on its budget deficit/surplus and its current balance and explain the relationship. Do government budget deficits always lead to current account deficits? Identify two other possible sources for current a..
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