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Specify and explain the typical shapes of marginal-benefit and marginal-cost curves. How are these curves used to determine the optimal allocation of resources to a particular product? If current output is such that marginal cost exceeds marginal benefit, should more or fewer resources be allocated to this product? Explain in details with an example.
How do global advertising campaigns benefit the company - what are the global advertising strategies of this company? How effective are they?
During 2007, the United States and Japan announced possible limits on Chinese imports through higher tariff rates on Chinese products. To avoid these limits, China would have to: decrease the value of the yuan and increase its trade surplus
The Biltmore Equipment Co. just issued 250,000 zero coupon bonds. These bonds mature in 30 years, have a par value of $1,000, and have a yield to maturity of 7.25 percent. What is the approximate total amount of money the company raised from issuing ..
If one party does not follow its Nash equilibrium strategy, then the other party may be better off with a strategy that is not a Nash equilibrium strategy; A Nash equilibrium in randomized strategies is like a Nash equilibrium in pure strategies: Giv..
Output gaps are caused by inflationary pressures generated by the unintended side effects of government policy. A low level of aggregate spending can cause real GDP to fall below potential output. When spending is high, output may rise above potentia..
Calculate the percentage change in nominal GDP, real GDP, and the GDP deáator in 2006 and 2007 from the preceding year. For each year, identify the variable that does not change. Explain in words why your answer makes sense.
Sterling, Inc. is a manufacturer of state-of-the-art computers. For the past ten years, Sterling has acquired all of its microchips from NoBugs Corporation, the only producer of chips meeting Sterling's high specifications. Write a discussion of the ..
A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is. What is the number of units that should be produced and sold eac..
Illustrate what would be new equilibrium if re is an increase in autonomous import expenditure from 100 to 200 which result from an increase in currency exchange rate.
Describe at least three ways you could pay for your morning cup pf coffee. Illustrate what are the advantages also disadvantages of each.
Suppose that a tariff is imposed on imports of minivans. Show graphically what the effect is in terms of price and quantity of imports. Be sure that your graph is completely and correctly labeled. What determines how much of the tariff is paid by the..
Which results in a greater welfare loss for the domestic economy.
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