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Consider a firm which has profits as a function of its capital stock as: Π(K). Suppose there is a cost to investment of the form C(I) = b|I|.Depreciation occurs at rate δ, and the discount rate is r. (a) Derive the conditions for the optimal level of investment.
(b) Suppose the government suddenly decides to reward investment by paying firms τ for each unit of investment they do (where τ b). Assuming we are initially in the steady state, show the path of in- vestment, profits and the capital stock over time.
(c) Answer the previous question assuming that the government an- nounces that the reward will be made at some specified time in the future.
Outline some of the rulings for affirmative action under Title VI of the Civil Rights Act of 1964, and the Supreme Court Decisions in the 1980s that forced the viewpoints to change of the current seniority system. Explain how the latter Civil Rights ..
Calculate the slope of the AS curve using data in the table/graph - Explain why the AD curve has the slope you calculated as a result of the "wealth effect" - Explain why the AD curve has the slope you calculated as a result of the "wealth effect".
Returning to the duopoly of part (b),suppose Firm 1 abides by the agreement but Firm 2 cheats by increasing production. How many widgets will Firm 2 produce? What will be each firm"s profits?
farmer dorr figures that her fixed costs are 2000 and the relevant portion of her total cost curve
What are the bene?ts of working closely with a PEF company? And why can decisions be made faster than in a listed company?
How might a recession impact the circular flow of income
The long-run supply curve for a good is a horizontal line at a price $3 per unit of the good. The demand curve for the good is QD = 50-2P. then what is the equilibrium output of the good.
Normal 0 false false false EN-US X-NONE X-NONE The over allocation of reso..
q1. what are the four major types of markets in microeconomic analysis?nbsp what are the key characteristics that
assume that country a has a population of 500000 and only produces one good cars. country a produces 100000 cars per
although new york state is second only to washington state in production of apples its production has been declining
In your role as new human resources manager, you plan to make a series of videos with various situations. These situations will allow the workers to view real life sexual harassment issues that they may have to deal with.
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