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How much can the manufacturer of super conducting magnetic energy storage systems afford to spend now on new equipment in lieu of spending $75,000 four years from now? The company’s real MARR is 12% per year and the inflation rate is 3% per year.
Moral Hazard. A worker can choose either high or low level of effort. The cost of high level is 1, the low level does not cost anything. If the agent chooses the high (low) level, principal gets π with probability pH (pL) and zero otherwise. Find the..
You are a health economics consultant for a major political campaign. Your client notes recent research that individuals in worse health tend to live further from health facilities. Therefore, building more health facilities in rural areas should imp..
If as price decreases by 10 percent, total revenue increases by 5 percent, what is true about demand? In 2014, India substantially increased its import tariff on sugarcane. Which of the following would the model of supply and demand not predict?
Suppose the government applies a specific tax to a good where the demand? elasticity,epsilon ε?, is negative −1.1?, and the supply? elasticity, η?, is l.5 If a specific? tax, tauτ?,of ?$1.50 were placed on the? good, what is the price increase that c..
If the economy is competitive so that factors of production are paid the value of their marginal products, illustrate what is the share of total income that will go to land.
Conceptually, what would happen to relative factor prices in labor-abundant country A and capital-abundant country B if the two countries joined together into a customs union? Why? Conceptually, why could the additional step of moving from a customs ..
Would you expect two farms of widely different size to have the same fixed costs on their enterprise budgets for the same enterprise? Might economies or diseconomies of size explain any differences?
q1. from 1947 to 1997 the cpi in us raised to 637 therefore inflation rose 637. use this fact to adjust each of the
Suppose that the demand curve for a product is given by P=36-Q where P is in thousands of dollars per auto and quantity is in millions of cars per year. What other things are held constant when one moves along a demand curve?
Environmentally appropriate production technologies also precuts with eco friendly packaging also recyclable materials.
Politicians are often heard saying that tuition at state universities should be kept low "to make education equally accessible to all residents of the state, regardless of income." Assuming that state funding for the universities is held constant; de..
The following equations are the market demand and supply schedules before the imposition of a per unit tax. (Qd = quantity demanded, Qs = quantity supplied, P = price) Assume there is an imposition of a $2 per unit tax on producers. Graph the supply ..
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