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Florida Citrus Mutual, an agricultural cooperative association for citrus growers in Florida, needs to predict what will happen to the price and output of Florida oranges under the conditions below. What are your predictions? For each part, sketch a graph showing the appropriate demand and supply analysis.
a. A major freeze destroys a large number of the orange trees in Florida.
b. The scientists in the agricultural extension service of the University of Florida discover a way to double the number of oranges produced by each orange tree.
c. The American Medical Association announces that drinking orange juice can reduce the risk of heart attack.
d. The price of Florida grape fruit falls.
Firm operates in a perfectly competitive market in which the market price is $10 per unit. What is its profit-maximizing rate of production?
How does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns and the theory demonstrates how trade affects the distribution of income within trading partners. Explain.
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Calculate Kalvin's expected haul over the four event crime spree and calculate the probability that Kalvin will never get caught over the four days.
Draw the cheese market for the United States showing the world price as the price for this market. How much cheese does the U.S. import at the world price?
historically shifts towards a more expansionary monetary policy have often been associated with increases in real
suppose that Ike is loss averse. In the morning, Ike's stock- broker calls to tell him that he has gained $1000 on his stock portfolio. In the evening, his accountant calls to tell him that he owes an extra $1000 in taxes.
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Would the accumulation of historical prices and quantities exchanged in the market establish a long-run supply curve? How would the historical relationship differ from how firms (and economists) envision today's long-run supply in the industry?
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