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Comparative advantage : Solution set
Provide one example of a good the United States would be considered to have a comparative advantage in producing. Why do you think the U.S. has this comparative advantage?
Provide a business or political example of the prisoner's dilemma from the field of game theory. What is the payoff for each participant in your example.
Let the market demand for rye bread be given by Q = 500 + I - 250P rye + 400P wheat , where Q is monthly demand in number of loaves, I is average monthly income in dollars
Suppose that a firm is a perfectly competitive industry has the following total cost schedule: Compute a marginal cost and average cost schedule for this firm.
What was the cross-exchange rate between the Real and the Peso in 2001? Real____/Peso. What was cross-exchage rate between Real and Peso in 2002? Real_____/Peso.
Compute the total revenue and total economic profit at each level of output. Compute the pizza shop's marginal costs and marginal revenue level of output. What is the profit maximizing rate of output for pizza shop?
Show that the government can achieve the social optimum by setting the correct tax prices a, b, and c. What prices should it set?
Illustrate to what extent is Walmart's financial health affected by fiscal also monetary policy.
Explain how advertising can be employed to allow Tots-R-Us to keep price average above cost without encouraging entry.
Expalin how the actions of a mine operator can spend $5 million to free a trapped miner.
Explain how might Peterson draw on the insights of new growth theory to draft a position statement ruling out unhindered immigration but proposing greater openness to "targeted immigrants".
Describe the benefits and costs associated with each type of externality. What happens to the Supply and/or Demand curve.
Explain how does the Leontief paradox challenge the overall applicability of the factor-endowment model.
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