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Cara has available h = 3000 hours per year for participating in the labor market and for leisure. She gets a wage w = $18 for the first 2,000 hours of work. If she works more than that, the wage on the additional hours is increased by 50%. She receives dividend income of = 3000 and pays a tax of T = 2000.
(a) Plot her budget constraint.
(b) Cara works 2,200 hours per year. Assuming her choice is optimal, demonstrate on a graph. What is her MRS?
(c) Cara's stocks are doing well and his dividend income went up by $1,000. She chose to work 1,800 hours. It is surprising that a relatively small change in income led to a big change in hours worked. Explain graphically.
Consider the timing: The incumbent chooses whether to invest; then the entrant observes the incumbents investment decision; then the firms compete in prices. Show that in subgame perfect equilibrium (SPNE) the incumbent does not invest.
Elucidate why a system of marketable polution permits leads to less costly pollution abatement and a higher concentration of polluted areas tha a command - and control system.
Illustrate what might cause the world interest rate to rise.
Currently, the retailer sells 50 suits per week for $200 each. The retailer wants to sell the entire stock of 200 suits during the next year. What should be the sales price?
Use the characteristics/features of the different market structure to determine which market structure to classify your chosen firm.
q1. if the impact of the u.s. imposed on japan voluntary export restraint of passenger cars to the u.s. from 2000000
Using your answers above, why does the growth rate of real GDP differ depending on the base year? Explain how the technique of Chain-Weighted Real GDP alleviates this problem.
Using the same product example above, analyzing how the risk tolerance factors play in supplying the good or service and how this should influence management's decisions.
Converse briefly its relationship to microeconomics also other related fields of study such as finance, marketplace also statistics.
q.two firms face a demand equation given by p200000 -6q1q2 where q1 and q2 are the outputs of the two firms. the total
Critics of this approach countered that a “zigzag path” that leads to new knowledge about economic phenomena or economic problems is clearly preferable to a “precise path” that leads only to endless refinement of what is already known. What is you..
q1. on a 100-acre farm a farmer is able to manufacture 3000 bushels of wheat when he hires two employees. also he is
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