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According to the Wall Street Journal, the US Department of Commerce has "decided that display prices by Japanese companies in their home market may be artificially low. Rather than comparing US prices with Japanese prices, Commerce is now coming up with their own 'fair' price based on a formula accounting for the costs of materials, research, and return on investment." Do you think this procedure is more or less likely to result in imposition of antidumping duties than one in which prices charged by Japanese displays in the US are compared with actual prices for the same displays in Japan? Why? Which procedure would you prefer to see used? Why?
In the text, we considered a sequential move game in which an entrant was considering entering an industry in competition with an incumbent firm ( Figure 15- 1). Consider now that the entrant, if fought, has the possibility of withdrawing from the in..
Suppose there are two inputs in the production function labor and capital and that this firm has a strange technology: the two inputs are perfect substitutes. The existing technology permits one machine to do the work of three people. The firm wants ..
An individual has an income of $1000 per month with which they buy the composite good with a price of $1 and food with a price of $2/unit of food. Would the consumer prefer to get $100 in food stamps or $100 in cash? You need to justify your answer t..
Use the IS-LM model to predict the short-run impact on the interest rate and output if the central bank pushes interest rate down at the same time that both consumption and investment fall due to a financial crisis.
An individual makes $45017 per year. If they move to a city where prices are on average 11 percent lower, and they continue to make the same salary, then what is their purchasing power parity adjusted income?
In a free market, the price system determines how society's output will be distributed by: If two goods are substitutes for each other, an increase in the price of one will necessarily:
Find Equilibrium GDP (Y). If potential GDP is 1950, is the economy in a recessionary or inflationary gap. Suppose that the MPC, falls to 0.75, so C = 0.85DI. Find Equilibrium GDP.
If the government issues 10 million tradable pollution permits to each? utility, what will be the cost of eliminating half of the pollution to? society? Using a cap-and-trade LOADING... system of tradable emission allowances will eliminate half of th..
Using your understanding of shifts in supply also demand, will this turn out to be a helpful or hurtful move on the Kenyan government's part.
A market has a demand curve described by P=30-Q, a supply curve described by P=16+Q, and a price ceiling of 20. Calculate the Total Surplus of the market with the price ceiling
Because changes in interest rates produce substitution and income effects that ________, we can't be sure what happens to _______ if interest rates change.
what is the growth rate of constant- dollar real gdp using year 1 as the base year? What is the growth rate of constant- dollar ral GDP using year 2 as the base year?
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