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Assume you were appointed economic adviser to a less developed country in Africa. The country seeks to encourage capital formation and wants to raise the rate of saving of its own residents and encourage foreigners to invest in their country. What role would you assign to property taxes in this nation to achieve its objectives?
The table given below are the demand and supply schedules for television sets in Venezuela, a small country that is unable to affect world prices.
An economist for the widget company estimated following short term production function. Compute the AP and MP mathematically and identify the three stages.
Assume you ran the only bakery in town. Further suppose that it was currently very profitable. A. What things might you consider if you wanted to ensure that you continued to enjoy the same success in the future?
How many units of phosphorus will these two firms emit if the phosphorus emissions are left unregulated? What is the socially optimal level of phosphorus emissions in the river?
How do the concepts of accounting profit and economic profit differ? Why is economic profit smaller than accounting profit? What are the three basic sources of the economic profit? Classify each of following according to those sources:
Evaluate the MU in the utility functions
Determine the short run average variable cost and the marginal cost functions. Determine the output level that minimizes short run average variable costs
If the government imposes a $1 per-unit tax, how do the marginal, average total, and average variable costs change? What if instead the government imposes a $100 per-firm tax?
Set up the Lagrangian for a cost minimization problem, then use it to derive the Hicksian demands for goods X and Y when the utility function has the Cobb-Douglas form
Johnston production is the price taker which utilizes this cost structure in the short run:
A television station is planning the sale of promotional dvds. It can have dvds manufactured by one of two suppliers. Supplier A will charge the station a set up fees of $1200 plus $2 for each dvds;
What incentives does a capitates physician have to keep his patients happy? What incentive does an FFS physician have?
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