Define and explain Foreign Direct Investment. What is the difference between a closed and open Economy? How would they obtain the financing for investment?

A 20.0 cm long organ pipe is filled with air and is open at one end and closed at the other. The velocity of sound in air at 0

) Consider a company that has two types of employees: people who take orders from customers (“order-takers”) and people who deliver the ordered products (“delivery people”). Suppose that the company obtains a new technology that allows it to use computers to automate many of the tasks that its order-takers are currently doing.

a. What effect would you expect this technology to have on the quantity of computers used by the company? Explain.

b. What effect would you expect this technology to have on the number of delivery people employed by the company? Explain.

c. What effect would you expect this technology to have on the number of order-takers employed by the company? Explain.

A.) A firm is deciding between two different sewing machines. Technology A has fixed costs of $500 and average variable costs of $50 whereas Technology B has fixed costs of $250 and marginal costs of $100.

The quantity of output at which the firm  is indifferent between the two technologies is ______

B.) A firm is deciding between two different sewing machines. Technology A has fixed costs of $500 and average variable costs of $50 whereas Technology B has fixed costs of $250 and marginal costs of $100.

What is the cost of production at the number of units where the company is indifferent between the two technologies?

a. $750

b. $850

c. $950

d. $1050

1. A single firm’s innovations in production technology often benefit the production of other firms because these other firms learn about the new technology and can use some of the ideas in their own production.

1. Is there an externality here?
2. How would an economist rank the following two policies in this situation? Why?
   1. A tariff on imports, to make sure that domestic production using the new technology occurs.
   2. A subsidy to domestic production, to make sure that domestic production using the new technology occurs.
3. What third policy (a tax or a subsidy to something) would the economist recommend as even better than these two?

Please Explain them in detail and No bad handwriting please! Thanks! :)

2. Answer all parts (a), (b), and (c) of this question. (a) [10 marks] Define and explain the concepts of moral hazard and adverse selection. Illustrate each concept with two examples: one in the context of new technology sale, the other in the context of new technology funding. (b) [20 marks] Explain why asymmetric information may cause a market failure in the markets for selling new technology and the market for funding new technological development. (c) [20 marks] Propose and defend a solution to these market failures in each of the two markets (technology sale and new technological development funding). Point out any disadvantages as well as any advantages of your solution.