Briefly describe the theory of reciprocal demand
Briefly describe the theory of reciprocal demand. Discuss how does it provide a meaningful explanation of the international term of trade?
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Let the random variable X describe the dollar amount spent in supermarket impulse buying in 10-minute (unplanned) shopping interval. Based upon a Denver Post article, the mean of probability distribution of x is $20 and standard deviation is $7. S
Illustrate a positive total fixed cost and total cost cue total variable cost. Then derive the average total cost, associated marginal cost and the average variable and average fixed cost curves.
Foreign and Home are two identical countries except that people in Home work twice as hard of those in Foreign. Each has two industries (Shoe and Steel industries), where steel production is capital intensive and shoe production is labor intensive
Assume small aircraft arrive at the certain airport according to the Poisson process. The mean time between arrivals of small aircrafts is 0.25 hour.
Explain what factors give rise to increasing returns to scale and decreasing returns to scale? Describe and then derive the expression for the marginal rate of technical substitution.
Suppose you buy only bananas and apples. Your budget is such that you can purchase three apples and four bananas or nine apples and two bananas.
Determine what is meant by the international competitiveness? Discuss how does this concept apply to an industry, a firm and a nation?
Describe a worker's labor-leisure choice associated with a wage decrease (assuming non labor income does not change). Demonstrate the income and the substitution effect associated this wage change on an appropriate graph.
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