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(a) Explain how more recent research tried to verify the H-O model.
(b) Explain the results of these more recent empirical tests.
(c) What general conclusion can be reached with respect to the utility and acceptance of the H-O model?
Dayan's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is C = 100 - 5Q + Q2, and demand is P = 55 - 2Q. a. What price should DD set to maximize profit? What output does the firm produce
Jane quit her job at IBM where she earned $50,000 a year. She cashed in $50,000 in corporate bonds that earned 10% interest annually to buy a mini-bus. Jane has decided to buy the mini-bus and set up a commuter service
The owner of a corner lot wants to fiind a use that will yeild a desirable return on his investment. After much study and calculation, the ower decides that the two best alternatives are to "build gas station" or to "build soft ice cream stand".
The firm's production manager claims that the firm's average cost of production is minimized at an output of 40 units. Furthermore, she claims that 40 units is the firm's profit-maximizing level of output. Explain whether these claims are correct.
The initial price of a cup of coffee at a local gas station on is $1, and at that price, 400 cups are demanded each day. If the price falls to $0.90 a cup, the quantity demanded will increase to 500 cups a day.
Political business cycle: Do economic events affect presidential elections? To test this so-called political business cycle theory, Gary 5rnith20 obtained the following regression results based on the U.S. presidential elections for the four yearl..
You own a building that has 4 possible uses: a cafe, a craft store, a hardware store, and a bookstore. The value of the building in each use is $2000; $3000; $4000; and $5000, respectively. You decide to open a hardware store. The opportunity cost..
Based on your conclusions regarding areas of risk that are systematic in origin, describe one or more ways that the firm's operations may be significantly influenced by shifts in money and capital markets, and government regulation of these.
Is the company a member of one or more supply chains? If yes, can you identify the major members of the supply chain(s)?
Recall also that, in equilibrium the real output produced (Y) is equal to aggregate expenditures: Y=C+Ig+Xn B. What happens to equilibrium Y if Ig changes to 10, will the outcome reveal the size of the multiplier
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As an alternative, an automated manufacturing system will cost $13400 with a $0.65 manufacturing cost per unit. The annual anticipated volume is 4200 units. Determine the break-even point.
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