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Two situations are explained below. Identify and explain whether each is a natural experiment or not.
i. We are interested in identifying the impact of the size of the police force on the number of robberies committed in Washington, DC. Two economists have noticed that the number of police in Washington, DC fluctuates with the terror alert level. The terror alert level represents how likely it is that a terrorist attack will happen.
ii. We are interested in identifying the impact of prenatal visits on infant health. An economist notices that there is a great deal of variation in the number of prenatal visits mothers attend due to the amount of insurance coverage they have. Mothers will tend to have better insurance when they are married, more educated, and working.
An income-producing property has an annual gross rent income of $1,000,000 and annual expenses of $300,000. Every 5 years, the parking lot need to be re-surfaced at $60,000 and every 10 years, the rood will have to be maintained at $40,000.
Suppose Joe, Louie, and Rebecca compete in the Bertrand ready-mix concrete market described in Section 19.2. Show that in any Nash equilibrium, all sales must occur at a price of $40 (equal to marginal cost). Extend your argument to show that this..
Today a proposed community college is estimated to cost $34.6 million, which is $127 per square foot of space multiplied by 272,310 square feet. If construction cost are expected to increase by 19% per year because of high demand for construction.
According to the figure, what share of the per unit tax on bags of coffee beans is paid by the buyers and what share is paid by the sellers?
Write down the conditions that characterize the world equilibrium when this condition is not satisfied.
What rate of return did the company make on this product?
What is the risk (standard deviation) that this investment manager has assumed in his calculation if it is known that returns are normally distributed with a mean of 5.6%?
What should Liu do? He has only minutes to determine how he can juggle these competing demands and how he should approach these issues.
At its current short-run level of production, a firm's average variable costs equal $20, and its average fixed costs equal $70. Its total costs at its current production level equal $200,000. a. What is the firm's current output level
To which point or points is production likely to shift?
What do you think? How would these considerations affect the exchange rate and output effects of fiscal policy? Do you see any parallels with this chapter's discussion of the longer-run impact of current account imbalances?
The demand curve for the industry is P=100-Q, where P is the price (in $millions) and Q is the total quantity produced by GE and Westinghouse. Currently, each firm has marginal cost of $40 and no fixed costs. Thanks!
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