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The firm is considering a movement of the plant to Shenzen, China where labour is cheaper. The same mathematical relationship between inputs and outputs will hold. A new plant in Shenzen would enjoy a one hour expense for labour of $40. Because of a scarcity of modern equipment, the expense of one machine hour would jump to $320. Can the move to China be financially justified? Theoretically, how will the mix of inputs in Shenzen compare to the mix of inputs in Angola? For political reasons, the plant is not moved to China. You receive news that certain machinery is unavailable for the foreseeable future. Due to unscheduled changeover work, use of machinery is constrained to 1500 hours each shift. This news comes at a bad time. The COO tells you that market demand for output has dramatically grown. The equilibrium price for a widget has risen to $160.
Suppose in country Triniland employers are required to pay overtime at 50% above the normal wage rate for workers who work beyond 8 hours a day.
Suppose that the assumption in key concept are satisfied. Show that X i is a valid instrument. That is, show that key concept 12.3 is satisfied with Z i = X i .
Using the IS/LM model, demonstrate the effect of each of the following changes.
An essay on Market imperfection associated with negative externalities.
Because net exports are counter-cyclical, analyze how the following change during an economic expansion: Consider the case in the context of a flexible exchange rate and a fixed exchange rate.
"A substantial number of relatively unskilled persons reported that they can't find work. At the same time, there're many unfilled jobs for relatively skilled people. Apparently, the problem is that there're more unskilled peop..
What is the share of Household A's income spent on education? Does this household consume more or less education if EF = 20 is provided by the government? What is the share of Household B's income spent on education?
According to a recent article in the Wall Street Journal, side-impact crashes are among the deadliest, accounting for nearly 10,000 deaths per year.
According to law of comparative advantage , who should produce wheat and who must produce Cd palyer? Evaluate all relevant opportunity cost.
Do the estimated coefficients have the required signs to yield a-shaped AVC curve? Discuss the significance using the p-values.
Explain the impacts of an expansionary fiscal policy such as a tax cut on the levels GDP, Consumption, Investment, interest rate and unemployment and price.
Social Dynamo Corporation earned profits last year of $49 million on sales of $500 million. During the same period, its major competitor - EIO Corp.- enjoyed sales of $490 million and earned profits of $52 million.
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