EBK ECONOMICS
EBK ECONOMICS
13th Edition
ISBN: 8220106799642
Author: PARKIN
Publisher: PEARSON
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Chapter 18, Problem 25APA

(a)

To determine

Increase in demand for land.

(b)

To determine

The assumption about future price of oil.

(c)

To determine

Fall in the price of oil.

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Big Miners at Odds Over Whether Worst Has Passed - Wall Street Journalby: Rhiannon Hoyle (see images below) 1) How do potential changes in the Chinese economy affect the demand for minerals as well as the decisions made by mining companies? 2) Why is it difficult for mining companies to get the timing right with regard to the development of new mines? 3) “Mining typically follows an about four-year boom-to-bust cycle….”  Is there any reason why they cannot use their historical data make their investment decisions and demand forecasts? 4) Mining companies are facing a potential “high price for mineral commodities” state of the economy and a potential “low price” state. Why then are they visiting factories and scrapyards? 5) How do environmental policies affect the demand for coal?  Why are mining companies concerned about their ability to predict changes in environmental policies?
11. What must an entrepreneur do to earn a profit? How do the actions of firms earning profits influence the value of resources? What happens to the value of resources when losses are present? If a firm making losses goes out of business, is this bad? Why or why not?
Do you think profit could be maintained if the tax burden were simply passed on to the consumers in the form of higher selling price? How will this affect sales? Explain.
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