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An automobile maker is interested in the marginal WTP by consumers for fuel economy in the cars the manufacturer produces. The automobile maker has asked you to conduct a hedonic analysis of automobile characteristics. Describe how you would carry out the analysis, being sure to discuss (a) which characteristics of cars you would measure, (b) how you would measure the hedonic price function, and (c) how you would translate this into a marginal WTP function.
Elucidate why would new textbook sales fall in the yrs subsequent the release of the latest edition.
However, firms that have installed expensive air purification systems are able to eliminate fumes from the glue inside the plants. Suppose that 50 of these pillow-manufacturing jobs exist in firms with air purification systems, while the other 150 of..
Assume a given country two industries X and Y, and in autarky X is produced by a monopolist (with constant returns to scale). Using a graph, explain the precompetitive and comparative advantage gains from trade.
Assuming that your interest rate, i, is equal to 14% annually, what would be your maximum offer (purchase price) on this machine?
What is Gross Private Domestic Investment? What is net investment? What are the government purchases? What is Net Export? What is Net Domestic Product?
Ignoring any supply-side effects, to close a recessionary gap of $100 billion with a government expenditure multiplier of 5, the government could
What are the different types of unemployment and how are they related to the condition of the economy during a given period? Is it possible for the number of employed workers to increase while the unemployment rate rises? Explain??
Draw a Keynesian short-run aggregate supply curve in which there is excessive unemployment and unused capacity in the economy. If aggregate demand were to increase along a Keynesian short-run aggregate supply curve, what would happen to the price lev..
You have just been hired by a company as an economist and strategic planner. Your company has asked you to generate a report explaining the consequences of the market structure in which the company operates. Assume that the market structure is an oli..
Trace the problems inherent in the unequal distribution of the benefits produced by the American economic system. Focus on the efforts of labor to change that inequality and on capital to retain its favored position. Describe evidence of inequality a..
A firm can produce any quantity of good X with the following cost structure: TC = 450,000 + 20Q, where Q measures units of output. Suppose the profit-maximizing output level you calculated to answer part A is split evenly between two firms, each with..
If you were the angel investor, what is your certainty equivalent for these two projects? Are you risk-averse, risk-neutral, or risk-lover?
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