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David has homeowners 3 policy that provides $280,000 of insurance on his dwelling, which has a current replacement value of $400,000. Ignoring any deductible, how much will David collect if a kitchen with a replacement value of $24,000 but an actual cash value of $20,000 is destroyed in a fire?
Assume that the MPC=0.6 for every consumer in the economy. You have just received a tax cut of $20000. How this action by the government will affect your spending plans? What
Long-run competition. Much of the cost of a new smart phone is in the research and development and in building manufacturing facilities. By contrast, the marginal cost of prod
Artsy T-Shirts sells 100,000 shirts a year, priced at $14 each. The company can produce any number of shirts at a constant cost of $10 each. It is considering expanding its sa
Suppose you have three indivisible assets, A, B and C with internal rates of return 2%, 5% and 10% respectively and initial costs of $1, $3, $3. Suppose you have $4 at 1% and
Suppose that demand is given by the equation: Using the midpoint formula, calculate the elasticity for demand when the price changes from $49 to $51. Would you classify the el
Suppose the cost function for your firm is: C = 10 +2Q + 5Q2. If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price
Please analyze the stimulus package by using the income multiplier. (A tax rebate is a decrease in autonomous tax, the To in the total tax formula mentioned in class).
There are 4 types of externalities considered by economists. Positive consumption externalities, negative consumption externalities, positive production externalities, and neg
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