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Q1. During a coffee-room debate among several young MBAs who had in recent times graduated, among all one of the young executives flatly stated, "The most this company can lose on its Brazilian division is the amount it has invested (its fixed costs)." Not everyone agreed with this statement. In which sense this statement is correct? In what conditions could it be false? Explain.
Q2. Explain why the food stamp program can have the same effect on the consumption pattern and well-being of recipients as an outright cash transfer of similar price. Why do you imagine it is not converted into an explicit cash transfer program, thereby saving the cost of printing and redeeming food stamps?
Design an alternative author-compensation scheme under which the author and the publisher would pick the same price.
Assume that he marries her the subsequent year. Other things equal, which of the following would be true concerning the reported official GDP the following year.
Where there currently is a tariff. What is the effect of this tariff on the U.S. economy.
George and John, stranded on an island, use clamshells for money. Last year George caught 300 fish and 5 wild boars. John grew 200 bunches of bananas.
The US put a specific tariff of €10 on European widgets. Calculate the new equilibrium quantity and price as well as the new Monopoly's profit.
Suppose now that the government reduces (t) and increases (t') so that the government budget constraint continues to hold. What will be the effects on an individual con-sumer's consumptionin present
The benefit of cutting down a forest is $1 million now. the environmental cost of that harvest is $10/year forever.
In this forum we discuss the different arguments that are made in favor of international trade protectionism and the important role of the politics of protectionism.
By what reasons financial crisis as well as either United States is going in right-wrong direction among its present strategies.
After reviewing efforts to reduce the Deficit, discuss the actions in use by Congress since 1985 to reduce the budget deficits.
Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..
What would be the new equilibrium in this economy if Investment increased by $12.
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