Answer the following questions: Question One: Explain why each of the following two statements is False: (Assume that all variables are kept constant in all the 3 statements below) Statement (1):If the price of shoes decreases‚ then the demand on socks will decrease as well because the two goods are complement goods. This statement is false : because they are complement goods so is the price of (x) which is shoes decreases the quantity demand of (y) which is socks must increases. In
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because all consumer surplus is transferred to the monopolist; none is lost. The transfer may be viewed as undesirable by society‚ but resources are still allocated efficiently (P = MC). Lost consumer Transfer to surplus monopolist Deadweight B MC(=AC) loss PC C Value of inputs D released MR 0 Q* QC Q Q The firm releases inputs valued at CBQCQ* for use in other industries. The loss in consumer surplus is P*ABPC. Part of this loss was transferred to the monopolist as producer surplus (P*ACPC). Is this
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Each blank answer gives you 1 point. Each correct answer adds 2 points to your score. 1. In the presence of a negative externality in the market for a good‚ a tax reduces both consumer and producer surplus in that market. 2. A company in a competitive market can increase its producer surplus by selling below the equilibrium price. 3. If there are risks associated with drilling for oil in the Gulf‚
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directs otherwise. This assignment covers text chapters 7 through 12. 1. Name two types of market failure. Explain why each may cause market outcomes to be inefficient. 2. What happens to consumer and producer surplus when the sale of a good is taxed? How does the change in consumer and producer surplus compare to the tax revenue? 3. How do the elasticities of supply and demand affect the deadweight loss of a tax? Why does this effect occur? 4. What does the domestic price that prevails without international
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Microsoft Corporation Yan Xiaoli A00363942 Principles of Microsoft-Fall 2012 Thomas Storring Saint Mary’s University Nov 6 2012 MICROSOFT CORPORAION As an American multinational corporation‚ Microsoft is regarded as the largest software maker measured by revenue in the software market. However‚ because Microsoft play an apparently dominate role in the market‚ more and more people argue that Microsoft have made damage on consumers’
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outwards policies. To protect the local farmers‚ EU provides agricultural subsidies to enhance the competitiveness of the domestic export products. What is more‚ there is an intervention price set by EU agency‚ at which price EU can digest the domestic surplus to stabilise the market and then export the stocks to other nations with subsidies. In the meantime‚ to suppress those import products with low price‚ EU set a threshold price that is generally higher than the world price. The difference between the
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1The role played by agriculture to economic development Agriculture is the dominant activity of poor countries such as Zimbabwe‚ which enhance our understanding of the dualistic. In the amplification of agriculture in economic development‚ a leading question is how agriculture contributes to economic growth and there seems to be a paradox in the role of agriculture in economic development. A well- known economist Simon Kuznets played an imperative role in coming up with the roles of agriculture
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Cooperative Cooperative shall mean only organizations composed primarily of small producers and of consumers who voluntarily join together to form business enterprises which they themselves own‚ control and patronize. A small producer shall mean a self-employed individual who‚ by himself or with this family provides the primary labor requirements of his business enterprise or one who earns at least fifty percent of his gross income from the payment proceeds or income of the labor he provides.
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Unit 3B Review Problems Please read and follow the directions carefully for each part. This assignment is due Friday‚ January 11 and it will count double on your homework grade. I will reward additional points for students who answer the questions in bold correctly. Part A: Please answer one of the two problems for Chapter 14‚ p.308-309. 1. Suppose the book-printing industry is competitive and begins in a long-run equilibrium. a. Draw a diagram describing the typical firm in
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Trade Barriers Ways and effects on protecting domestic labour markets from dumping International Business and Social Sciences WS11/12 Labour Market and Human Resource Management International Labour Policy Ways and effects on protecting domestic labour markets from dumping With the grow of international trade in our markets‚ the degree and the amount of competition has increased tremendously in our domestic labour markets. The pressure in our domestic markets are higher than ever
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