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The nation of Acirema is “small” unable to affect world prices. It imports peanuts at a world price of $10.
Its demand curve is: D = 400 – 10P and its supply curve is: S = 50 + 5P.
Now suppose Acriema imposes a production subsidy of $2 per unit produced by Acriema’s firms. Calculate and graph the new equilibrium with the production subsidy in place. Calculate the net change in welfare experienced by Acriema as a result of the production subsidy.
Total cost of the production, as you already know is divided onto fixed and variable costs. Analyze different parts of the total cost (real life examples) and make your own conclusion, dividing them onto two main groups on one side those that belong ..
What are the effects of capital formation by comparing the ppf,at the present time and ten years in the future,for two economies,one with a high and the other with alow rateof capital formation.
If these economists ignore the possibility of crowding out, illustrate what would they estimate the marginal propensity to consume (MPC) to be.
Conclude how fixed and variable costs should be adjusted to maximize profit and identify methods to reduce costs.
A charitable university benefactor has decided to donate a large amount of money for student scholarships.
If we accept the conclusion that librarians are more vital to the country than professional football players, explain why are librarians so poorly paid in comparison.
Please compare how the Solow model views a fall in the population growth rate with the many issues that countries with falling population growth rates face in the real world. Be sure to describe an issue that aging economies face.
Assume that an investment is forcasted to produce the following returns: a 20% probability of a $1200 return; 50% probabilty of a $5600 return and 30% probabilty of $9500 return. What is the expected amount of return this investment will produce?
Suppose that in the short run k=100. Moreover, wage of labor is w=5 and price of the product is p=10. What are the optimal units of labor?
What Price is plotted on the vertical axis, and quantity is plotted on the horizontal axis.
The law of supply states that, holding all else constant, as the price of a good increases:
One month ago, they added five workers, and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?
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