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The city of Econville has three bookstores on the Main Circle that is 1 mile long. The bookstores have no costs. The distance between any two neighboring stores is the same and equal to 1/3 miles. There are 100 residents uniformly located along the Main Circle. Each resident rents one book per day provided that the price charged is no more than $5. If a consumer is located s miles from a store the transportation costs in getting a book from that store is $.50s. What price will the three stores set given they act as price competitors? What profits do they earn?
1.this question is about the theory of money demand.aconsider two financial assets a and b which could be quite
What is the SAP (structural adjustment program)? What are the IMF-imposed "conditionalities"? Why did the IMF and World Bank imposed them upon Third World countries during both their debt crises and financial crises?
Informal financial institutions and its system are important in serving the group at the bottom of the income pyramid. Explain the characteristics of informal financial institutions and the importance of its financial systems.
Describe a situation that would call for applying one or more of any (dynamic economic model/legit model/random walk model/spurious regression/co integrated time series/tests of stationary). Explain your rationale for applying the model you chose.
Please Identify then Contrast the differences between the rise of prices due to Inflation and the rise in prices in Micro Economic Markets.
You need to decide whether you expand your current business (firm) or not. You face the following given facts: (1) Funds are available, (2)The market is expected to expand over the coming 20 years, (3) You cannot have an estimation for the l..
Illustrate we know about the effects of mandatory seat belt laws, which of the following groups would be most likely to mount a campaign to repeal those laws.
A manufacturer of computer chips has a computer hardware company as its largest customer. The computer hardware company requires all of its chips to meet specifications of 1.2 cm. The vice-president of manufacturing, concerned about a possible loss o..
Imagine the economy starts off at the steady state, with m=v=1 and b=1/2; additionally, suppose that the Fed's infaltion target (π-bar) is 1% and that the real federal fund rates (r-bar) is 1%. In period 1, political uncertainty causes a negative AD ..
Consider Solow's model when the production function is Y = 1000K0.3 L0.7 . The population growth rate is 2%, ? = 0.1 is the depreciation rate and s = 0.25 is the savings rate. Suppose this economy was in its steady state when unexpectedly Total Facto..
Indentured servitude is no longer legal. An indenture was a contract binding a person to work for another for a given length of time (usually for many years), as an apprentice to a master or an immigrant to service in a colony. Such a relationship wa..
Suppose a firm in a competitive market reduces its output by 20%, as a result the price of its output is likely to? Suppose a firm in a competitive market produces and sells 150 units of output and earns $1800 in total revenue from the sales, if the ..
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