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An important factor in selling a residential property is the number of people who look through the home. A sample of 17 homes recently sold in the Buffalo, New York, area revealed the mean number looking through each home was 19 and the standard deviation of the sample was 4 people. Develop a 98% confidence interval for the population mean.
where P is the price of cigarettes in dollars and Q is in millions of cigars Using calculus, show that the demand and supply curve have constant elasticity along their entire length. What are the values of the demand and supply elasticities
The estimated salvage value was $30,000. At the end of the 5th year the asset was sold for $90,000. From a tax perspective, what is happening at the time of disposal, and what is the dollar amount.
Consider the Harrod-Domar model. Suppose that initially, an African country's capital-output ratio (k) is 5, and the savings rate (s) is 12%. a). What will be the initial GDP growth rate b). Suppose that technological advances cause the capital-out..
Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose that a model of the economy suggests that the real interest rate
The seller, Ryan Miller's mom (who is a monopolist, at least with respect to these consumers, and can "produce" enough quantity to meet demand), has to determine her pricing strategy, and whether to sell the goods separately or as a bundle.
Valles Global Industries has a small division that addresses the oil business. Currently, they are thinking about a pumping problem in the Durango Quadrant. They have an existing pump that will extract 50% of the known crude-oil reserve in the f..
A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a y..
Your firm designs training materials for computer training classes, and you have just received a request to bid on a contract to produce a complete set of training manuals for an 8-session class. From previous experience, you know that your firm f..
Suppose that an oil well is expected to produce $100,000 of oil during its first year. What would be the present worth of the anticipated revenue stream at an interest rate of 10%, compounded annually over the next 5 years
Assume that a regulator assigns property rights on the externality, i.e. right to make noise or to enjoy an environment free of noise. Show that by agreeing on the airport traffic and on compensations, the two firms reaches the efficient outcome (..
Davy Metal Company produces brass fittings. Davy's engineers estimate the production function represented below as relevant for their long-run capital-labor decisions. Q = 500L^0.6K^0.8 where Q = annual output measured in pounds.
Year Actual 5yr move 3yr exponential exponential demand average avg. smoothing smoothing W=0.9 W=0.3 2000 800 xxxxx xxxxx xxxxx xxxxx 2001 925 xxxxx xxxxx 2002 900 xxxxx xxxxx 2003 1025 xxxxx 2004 1150 xxxxx 2005 1160 2006 1200 2007 1150 2008 1..
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