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Summer concerts are a pure public good in the town of Bucktown, The marginal social cost of each concert every night is at $500. Explain why it would be inefficient to require
A company has acquired a paint booth (see prices). The anticipated life for the booth is 14 years but the company plans to depreciate it as a 7 year MARCS property (half year
What is the golden rule savings rate? How does it depend on the depreciation rate and the marginal product of captial? If the current savings rate is below the golden rule sav
Use commercial bank and Federal Reserve Bank balance sheets to demonstrate the effect of each of the following transactions on commercial bank reserves: Federal Reserve Banks
Suppose that there are two firms competing in the market for taxi services. Big Ben Taxis has the marginal cost MCB = $9 per trip, and the fixed cost FCB = $3,000,000. Find th
If the Federal Reserve wishes to put upward pressure on market interest rates, what would it be most likely to do? How would it proceed to push the Federal funds rate in an up
Mr Jones run a motel in St Pete. The market is highly competitive since there are many motels in the area and average room rate per night is $35. There are 30 rooms in Mr Jone
Approximately 46 million Americans under age 65 are uninsured. About two-thirds of the uninsured are either employed (full- or part- time) or in a family with an employed memb
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