Finance Answers

What are the special features of factor pricing? How factor pricing differs from commodity pricing?

Explain the importance of integrity and ethics in preparing and reporting financial information..

can you explain why prices decrease when a market moves from a monopoly to perfect competition?

Consider a small country in which the demand and supply curves of a
particular commodity are respectively given as:
Qd=120-20P (1)
Qs=20P (2)

where Qd is the quantity demanded, Qs the quantity supplied, and P the price.

(a) compute the equilibrium price and quantity under conditions of autarky and
the elasticity of demand (Ed ) and supply (Es ) at the point of equilibrium.

(b) Suppose now that the country decides to engage in trade for this particular
commodity and the international price Pw=1. Compute Qd , Qs, imports (M),
Ed , Es , and the changes in consumers’ surplus, producers’ surplus and in total
welfare. Discuss your answer.

(c) Lets assume that the country imposes a tariff t =1 per unit. Compute Qd , Qs ,
M, Ed , Es , and the changes in consumers’ surplus, producers’ surplus, total
welfare and in tariff revenue (TR) and compare the results with free trade case.

Let two countries with offer curves y =5x + 10x^2 and y =20x -5x^2
(a) Determine the equilibrium terms of trade.

(b) Determine the autarky terms of trade and show that the equilibrium terms of
trade lie between the two autarky ones.

A country produces only commodity 1 and commodity 2 using capital (K) and
Labor (L) as inputs. Assume that the production of commodity 1 uses 10 units of
capital for each worker, so that K1 =10L1 , while the production of commodity 2
uses 2 units of capital for each worker, so that K2 =2L2 . The total supply of
capital is 400 units and the total supply of labor is 100 units.

(a) Determine the amount of both inputs of production, that is, capital and labor,
used in each commodity and the output levels.

(b) Now assume that the number of workers increases to 140 due to immigration,
keeping total capital fixed at 400. Solve for the amount of capital and labor in
used in each commodity and for the output levels. Relate your findings in (a) and
(b) to a theoretical result of the Standard Trade Theory.

How does international trade benefits Households?

Local and international trade has expanded in recent years, posing, both, as a threat and as an opportunity to households and firms, What are the threats and what are the opportunities?

you know that the water park will increase the traffic flow in the streets around the water park. there both businesses and neighborhoods adjacent to the increased traffic flow. the coast to the community is estimated to be $6 per person. what kind of externality is this? why?

explain how a production possibility frontier can be use