transformation (MRT). What is MRT? Marginal Rate of Transformation (MRT) To simplify‚ let us assume that only two goods are produced in an economy. Let these two goods be guns and butter‚ the famous example given by Samuelson. The guns symbolize defense goods and butter‚ the civilian goods. The example‚ therefore‚ symbolizes the problem of choice between civilian goods and war goods. In
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PHILIPPINE AIRLINES: What’s next? Philippines airlines started its history on March 15‚ 1941 on a small twin-engine Beech Model 18 flying 212 of pure skies from Manila to Baguio with a full load of five passengers. Upon the outbreak of the pacific war‚ PAL’s two aircraft were pressed into service with the US army Air Corps. Post-war operations began on February 14‚ 1946 with five ex-military Douglas DC-35. In July‚ the airline chartered DC-4s to carry American service men home to Oakland‚ making
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CASES: The California Wine Cluster‚ HBS Case: 9-799-124 ASSIGNMENTS: 1. Why has California emerged as one of the leading wine – producing regions in the world? It was Californian first vintners in California who began cultivating grapes for use in sacramental wines in the mid-to-late 1700s. In the 1830s and 1840s the first commercial vineyards were established. Vintners survived by making grape juice and sacramental or medicinal wines. 2. How was California able to upgrade from producing
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Automobile Industry Hailed as ‘the industry of industries’ by Peter Drucker‚ the founding father of the study of management‚ in 1946‚ the automobile industry had evolved continuously with changing times from craft production in 1890s to mass production in 1910s to lean production techniques in the 1970s. The Asian countries‚ mainly by Japan‚ China and India‚ registered a 9% increase in production over last year‚ constituting 35.9% of the global production. In fact China and India posted positive
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Economics 370 Microeconomic Theory Problem Set 6 Answer Key 1) Describe the effects on output and welfare if the government regulates a monopoly so that it may not charge a price above p‚ which lies between the unregulated monopoly price and the optimally regulate price (determined by the intersection of the firm’s marginal cost and the market demand curve). As usual‚ the monopoly determines its optimal output on the basis of MR = MC. Here‚ however‚ it cannot charge a price in excess of p*. So
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A Closer Look at a Natural Phenomenon Peer pressure can be completely harmless‚ but also terribly deadly. In his Confessions‚ St. Augustine talks about a number of such situations in which he found himself during his adolescence. These events took place because of his friends and the pressure they put on him. Over the centuries since Augustine’s era‚ much has changed in our world. Has peer pressure been changed or expelled from our world? No. This “natural phenomenon” among humans was in full use
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Question Explain briefly how macroeconomics is different from microeconomics. How can macroeconomists use microeconomic theory to guide them in their work‚ and why might the wish to do so? Please give examples. Introduction All economic problems arise from scarcity because human wants are unlimited but resources are limited. Economics the science of choice‚ it is talking about how individuals and societies make a choice from the scarcity. All economic choices can be summarized in three questions:
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monopoly. 2. Barriers to entry derive from the ownership of assets‚ legal barriers and economies of scale. For legal barriers‚ a good example would be Astro in Malaysia. Government put barriers for other firm to enter into satellite broadcast business in Malaysia as government want to closely monitor what people can watch and cannot watch in Malaysia. An example of ownership of assets would be- De Beers controls the vast majority of the world’s diamond reserves‚ allowing only a certain number of
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Macroeconomics‚ 12e (Gordon) Chapter 2 The Measurement of Income‚ Prices‚ and Unemployment 2.1 Why We Care About Income 1) Job openings are plentiful when the A) actual real GDP is above the natural real GDP. B) natural real GDP is above the actual real GDP. C) natural real GDP is increasing rapidly. D) None of the above. Question Status: Previous Edition 2) The real income per capita is a measure of the A) well-being of every individual in the nation. B) well-being of the average individual
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2nd part: Microeconomic Analysis Under the Pure Competition Assumption Chap 3-The Theory of Consumer Choice (stiglitz chap 5) Section 1) Preferences: What the Consumer Wants A/ The consumer preferences * Utility= the level of happiness or satisfaction that a person receives from the consumption of goods and services. Utility is a measure of well-being * Focus on 2 goods X and Y * Cardinal/Ordinal measurements related economics problem. cardinal: a variable is cardinally measurable
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