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Q1. Explain how does an increase in transport costs change the gains from trade in Melitz's (2003) model? Are the effects of an increase in transport costs qualitatively different from the effects of an increase in the fixed cost of becoming an exporter? Explain.
Q2. Assume a stream is discovered whose water has remarkable healing power? You decide to bottle the liquid and sell it. The market demand is linear and is given as P=30-Q! The marginal cost to produce this drink new drink is 3$. Illustrate cost would this new drink sell for if it sold in a competitive market? Illustrate what is the monopoly cost of this new drink? Q3. Is there a surplus or deficit in the government budget at the equilibrium level of income? Explain how much?
Clifford is in a real hurry, however, and skips the speed ramp. Starting from rest with an acceleration of 0.49 m/s2, he covers the same distance as the ramp does, but in one-fourth the time. What is the speed at which belt of the ramp is moving.
Either design will serve equally well and will involve the same material and manufacturing costs excluding the lathe as well as drilling operations.
A diver 50 m deep in 10 degrees Celsius fresh water exhales a 1.2 cm diameter bubble. What is the bubble's diameter just as it reaches the surface of the lake, where the water temperature is 35 degrees Celsius? Suppose that the air bubble is always i..
The potential at location A is 392 V. A positively charged particle is released there from rest and arrives at location B with a speed vB. The potential at location C is 780 V, and when released from rest from this spot, the particle arrives at B wit..
The research department of Wilson has discovered a new technology on how to make more durable tennis balls and is considering whether or not to adopt the new technique.
If she were to use the mattress as a trampoline losing contact with it for part of each cycle. What minimum amplitude of oscillation does she need.
An elastic cord is 69 cm long when a weight of 57 N hangs from it but is 70 cm long when the weight of 75 N hangs from it. What is the "spring" constant k of this elastic cord.
Illustrate what is the mechanism by which an aggregate demand recession is transmitted from one country to another.
What is the magnitude of an object's average velocity if an object moves from a point with coordinates x = 2.54 m, y = -3.56 m to a point with coordinates x = 7.85 m, y = -6.54 m in a time interval of 2.02 s.
A 33.2 m steel wire and a 25.6 m copper wire both with 1.00 mm diameters, are connected end to end and are stretched to a tension of 120 N. How long does it take the transverse wave to travel the entire length of the two wires.
Explain what Alice must prove in order to maintain a claim for sexual harassment and constructive discharge.
movements along the consumption function while changes in wealth lead to a shift of the consumption function.
The firm's average variable costs and average fixed costs per month are R200-00 and R500-00, respectively.
With the decrease in demand for bridge and tunnel crossings, what is the optimal way to adjust tolls: raise tolls, lower tolls, or leave unchanged.
What is the deadweight loss in both markets if the price of a crate of fresh oranges is raised.
Store maximizes profits and the price elasticity of demand for milk is -2 for coupon users, what is the price elasticity of demand for non-users.
Considering companies operate in their own self interest, should cartels be legal.
Would a typical hedger be willing to pay a risk premium in order to hedge by buying foreign currency forward.
The largest loan that the bank can make on the basis of the new deposit. If the bank chooses to hold reserves of $3,000 on the new deposit, what are the excess reserves on the deposit.
Assuming that the marginal cost is zero to provide the rides to those in attendance, what is the best pay-per-ride price
If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decision, any business decision is profitable.
A county is considering using a piece of park land for one of two alternative recreation projects. Project S would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years.
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