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Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8-0.4q. Marginal extraction cost = $2. r = 20%. The available supply is 20 units. Calculate the allocation of outputs across the two periods that maximizes the present value of the net benefits for the use of the resources. Draw your answer on a graph.
Assuming that factor markets are otherwise free and competitive, explain why the higher real wage would fail to increase the share of labor income in national income.
New York & Co. is considering a limited edition denim jacket. Because it is so special, the first few will sell for a very high price, the next for less, and so on. A curve on a graph is used to estimate the price of each jacket. The manufacturing eq..
Suppose that Taher's pizza business operates under competitive conditions and that his short-run production function is q=20^E. Once again assume w = $6 but suppose the government imposes a tax of 25% on each dollar he pays his workers, to cover thei..
Illustrate what marketplace structure did you assume. Would your answers in b change if the marketplace for sewing machines were competitive.
By increasing the money supply, the Federal Reserve can lower interest rates. This has a broad impact on the economy as mortgages, business loans, etc. can be obtained less expensively. Evaluate this view of the cause of recessions. Do you agree or d..
After 25 years explain how much larger is Country B's economy the Country A's economy. Why is the answer not 25 percent.
Two goods are substitutes if an increase in the price of one good leads to an increase in demand for the other. Markets exist to facilitate exchange between people. The cost of a master's degree in engineering equals the tuition plus the cost of book..
In "Final Jeopardy" (pp. 234-242), Stephen Baker expresses an interesting look at the way technology, especially in terms of machines, could dramatically change the relationship between mankind and technology—not just helping us to locate information..
Illustrate what is the probability the driving distance for one of these golfers is less than 290 yards. What is the probability the driving distance for one of these golfers is at least 300 yards.
Draw in excel an isoquant that shows little substitution between two factor inputs and on that shows large substitution. Vertical represents capital and horizontal represents labor
increases the equilibrium GDP also the size of that increase varies directly with the size of the MPC
Describe what a manufacturer of each product might do in the short run to increase production.
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