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Explain why David Korten claims that "The global economic integration advanced through GATT and the World Trade Organization is at odds with the most basic principles of market economics."?
If a second McDonald's franchise, Mac Junior, was to move into Obscure City. Elucidate what is the market price that would prevail at equilibrium in a Cournot oligopoly.
The generalized demand and supply functions for good X are Qxd = 100 – 2PX + 0.01M + 8 PY - 4Pz Qxs = 50 + 3PX – 6PI + PT Where Qxd = quantity demanded of good X Px = price of good X M = consumer income PY = price of good Y Pz= price of good Z Qxs = ..
A company is considering a new bottle-capping machine. The initial cost of the machine is 300,000 SR and it has a 20 year life. Yearly maintenance cost is estimated to be 15000 per year. The machine required a major overhaul costing 50000 at the end ..
Consider the market for electricity. Suppose demand (in megawatt hours) is given by Q = 50 − P and that the marginal private cost of generating electricity is $10 per megawatt hour (P is in the same units). Suppose further that smoke is generated in ..
The Einstein Bagel Corp. has used a frequent buyer program whereby a consumer receives a stamp each time she purchases one dozen bagels for $6. After a consumer accrues 10 stamps, she receives one dozen bagels free. Given this information, construct ..
Discuss the income-distribution effects of trade a) between countries (HINT: terms of trade) and b) within countries (HINT: Samuelson).
A refrigerator sold for $500. The store financed the refrigerator by charging 0.5% monthly interest on the unpaid balance. If the refrigerator is paid for with 30 equal end-of-month payments:
Using supply and demand and competitive analyses, explain what happens to a pharmaceutical company’s revenues and profits from an individual drug once it loses its patent protection. Then identify at least one strategy the company can use to mitigate..
If her goal is to maximize the amount of money she can make every week, explain how many hours will she work at the bookstore.
Assume that velocity and aggregate output are constant. If the money supply increases from $1.10 trillion to $1.18 trillion:
Consider a market with a demand curve of P=10-Q and a supply curve of P=Q. Before the imposition of a tax, equilibrium quantity is 5, and equilibrium price is $5 (verify this). If a tax of $5 per unit is placed on this market, quantity traded falls t..
Suppose the marginal cost curve in the short run first decreases and then increases. If marginal cost is decreasing, _____ must be _____ and _____ must be _____.
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