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Suppose someone stated that the Heckscher-Ohlin model is best-suited for explaining trade between developed countries and developing countries, while newer theories such as those of Linder and Krugman are best-suited for explaining trade among developed countries. Would you agree with this observation? Why or why not?
A $150 tax levied on the producer of cars will cause:
Illustrate what type of market structure would this behavior likely be prevalent. Illustrate what does this behavior accomplish for the firm.
Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses?
Assume that 4-year Treasury Bonds currently have a nominal yield of 6.2%, and 4-year Corporate Bonds have a nominal yield of 8.5%. Further assume that Maturity Risk Premium (MRP) on all 4-year contracts currently is 1.3%, and Corporate Bonds currentl..
Include ideas on productivity and savings rates. What changes took place during the Industrial Revolution that made sustained economic growth possible?
Human Capital Investments. Suppose that the marginal cost of an additional unit of human capital is given by MC = 400 and the marginal benefit is given by MB = 800 ? 25HC , where HC is the number of units of human capital. Graph MB and MC as a functi..
The Immediate lyric Division accused Microsoft of forcing consumers to buy Internet Explorer whenever they bought Windows
What is the firm's profit-maximizing (or loss minimizing) output (Q) level? What is the amount of its economic profits (or losses) at this output level? What would be the firm's decision at this price/output level?
Calculate the prot-maximizing monopoly price and quantity. Calculate the price and quantity that arise under perfect competition with a market supply curve P = Q=2.
Explore how a firm determines the optimal scale of a plant for a given rate of output and why this determination relates to longer-run strategies versus current operations. Also, discuss the differences between economies of scale and economies of sco..
Explain how this may be related to the problem of adverse selection. What could banks do to try to reduce this problem?
In customer theory there are some useful analytic results that can come from studying homothetic utility functions of consumption for each.
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