EBK ECONOMICS
13th Edition
ISBN: 8220106799642
Author: PARKIN
Publisher: PEARSON
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Chapter 26, Problem 1SPA
To determine
Identify Country U’s dollar
Expert Solution & Answer
Explanation of Solution
Country U’s dollar exchange rate increased from $1.24 to 1.29 against Country C’s dollar that means the value of Country U’s dollar increases, which implies the appreciation of Country U’s dollar against Country C’s dollar.
Country U’s dollar exchange rate that decreased from 121 to 108 against the yen means the value of the dollar decreases, which implies the depreciation of Country U’s dollar against the yen.
Economics Concept Introduction
Appreciation of currency: The appreciation of currency refers to increase in the international value of the currency with respect to other currency in the exchange market, which causes increase in the value of a currency against the other currency.
Currency depreciation: The currency depreciation is the fall in the value of the domestic currency relative to the foreign currency, which in turn reduces the value of currency against the other currency.
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3. Consider a course allocation problem with strict and non-responsive preferences. Isthere a mechanism that is efficient and strategy-proof? If so, state the mechanismand show that it satisfies efficiency and strategyproofness. {hint serial dictatorship and show using example}4. Consider a course allocation problem with responsive preferences and at least 3students. Is there a mechanism that is efficient and strategy-proof that is not theSerial Dictatorship? If so, state the mechanism and show that it satisfies efficiencyand strategyproofness.5. Suggest a mechanism for allocating students to courses in a situation where preferences are non-responsive, and study its properties (efficiency and strategyproofness). Please be creative
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2. a) Consider a market where one firm (firm 1) currently produces, but a second firm (firm 2) is intending to enter and sell an identical product. The market has inverse demand given by p = 40 – Q, where Q is the total output sold in the market. Firm 1 has a marginal cost of 16 and firm 2 has a marginal cost of c < 16, with no fixed cost for either firm. Firm 2 has a choice of competing on price or quantity, with firms making their choices simultaneously (i.e. the market will be either a Bertrand or Cournot duopoly). If you were advising firm 2 on entering this market, how would you advise it to compete? To what extent would the size of firm 2’s cost advantage affect your advice?
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Chapter 26 Solutions
EBK ECONOMICS
Ch. 26.1 - Prob. 1RQCh. 26.1 - Prob. 2RQCh. 26.1 - Prob. 3RQCh. 26.1 - Prob. 4RQCh. 26.1 - Prob. 5RQCh. 26.1 - Prob. 6RQCh. 26.1 - Prob. 7RQCh. 26.2 - Prob. 1RQCh. 26.2 - Prob. 2RQCh. 26.2 - Prob. 3RQ
Ch. 26.2 - Prob. 4RQCh. 26.2 - Prob. 5RQCh. 26.2 - Prob. 6RQCh. 26.3 - Prob. 1RQCh. 26.3 - Prob. 2RQCh. 26.3 - Prob. 3RQCh. 26.3 - Prob. 4RQCh. 26.4 - Prob. 1RQCh. 26.4 - Prob. 2RQCh. 26.4 - Prob. 3RQCh. 26 - Prob. 1SPACh. 26 - Prob. 2SPACh. 26 - Prob. 3SPACh. 26 - Prob. 4SPACh. 26 - Prob. 5SPACh. 26 - Prob. 6SPACh. 26 - Prob. 7SPACh. 26 - Prob. 8SPACh. 26 - Prob. 9SPACh. 26 - Prob. 10SPACh. 26 - Prob. 11APACh. 26 - Prob. 12APACh. 26 - Prob. 13APACh. 26 - Prob. 14APACh. 26 - Prob. 15APACh. 26 - Prob. 16APACh. 26 - Prob. 17APACh. 26 - Prob. 18APACh. 26 - Prob. 19APACh. 26 - Prob. 20APACh. 26 - Prob. 21APACh. 26 - Prob. 22APACh. 26 - Prob. 23APACh. 26 - Prob. 24APACh. 26 - Prob. 25APACh. 26 - Prob. 26APACh. 26 - Prob. 27APACh. 26 - Prob. 28APACh. 26 - Prob. 29APA
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