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Firm ‘A’ can make either 500 flashlights or 2000 batteries.
Firm ‘B’ can make either 650 flashlights or 1500 batteries.
a) Who has comparative advantage in each good?
b) How would they both make themselves better off?
Petra borrowed $12,500 thirty months ago from a lender who charges interest of 4.05 percent compounded monthly. She wants to borrow $10,000 more today. The original lender will not increase her loan, so she has found a new lender
What happens to Market Equilibrium Price (MEP) if Supply decreases as Demand increases?c. What happens to Market Equilibrium Quantity (MEQ) after there has been an increase in Supply followed by a decrease in Demand which is followed by another in..
Suppose that a company is considering building a new factory to increase their productive capacity. If they had planned to borrow the funding in the bond market, how would an increase in interest rates influence this decision?
Big Steel Corp. is a price leader in the local steel market. The other, smaller manufacturers set their price based on that established by Big Steel. Discuss how Big Steel should use the information on the supply of steel by other, smaller competi..
Describe the output and price effects that influence the profit-maximizing decision faced by a firm in an oligopoly market. How does this differ from output and price effects in a monopoly market?
Because government subsidies are paid with tax dollars and tax dollars are often used to purchase any surplus milk, consumers effectively pay more than the retail price per gallon of milk when considering the amount they contribute to dairy farmers t..
You've completed your vacation in a foreign country. At the airport, you discover that you have the equivalent of $20 local currency left over. the exchange control officer tells you that you can't convert the local money back to dollars. Nor can ..
Consider an economy described by the following: C' = 3.25 trillion; I' = 1.3 trillion; G' = 3.5 trillion; T' = 3.0 trillion; NX' = -1.0 trillion; f = 1; b = 0.75; d = 0.3; x = 0.1; ? = 1 and r' = 1. a. Derive expressions for the MP curve and AD cu..
Consider total cost and total revenue given in the table given below, Compute profit for each quantity. How much should the firm produce to maximize profit?
Within this group, the average weekly wage of the high-school graduates is 2/3 the amount of college graduates. Assume that wage elasticity and all other individual characteristics are the same across the education groups.
different end points in their vision about the economy-Smith claims we end, as Heilbroner puts it, in "Vahalla" while Ricardo claims we end a relatively dismal steady state. In your thought paper, explore why they reach these strikingly different ..
Shockers Corp. acquires an asset for $200,000 which they estimate 3 years as the service life. For any taxable income, Shockers Corp uses a tax rate of 50%.
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