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Increases in real GDP are often interpreted as increases in welfare. What are some problems with this interpretation? Which do you think is the biggest problem with it, and why?
American Pulp Corp (APC) has entered into a contract to harvest timber for $450,000. The total estimated available harvest is 150 million board-feet. What is the depletion allowance for years 1 to 3, if 42,45.
How much tax of each type do you pay if you earn $20,000 a year Taking all taxes into account, what are your average and marginal tax rates What happens to your tax bill and to your average and marginal tax rates if your income rises to $40,000
Write down the unit cost of producing one yard of cloth and one calorie of food as a function of the price of one machine-hour, r, and one work-hour, w. In a compet- itive market, those costs will be equal to the prices of cloth and food.
Argentina also has two distributors with values similar to those in Egypt, but both are run by the government. How does this affect the amount you could capture?
factory 2 has a marginal cost function given by MC2 = 0:5q2 5, how much total output will the company choose to produce and how will it distribute this production between its two factories in order to maximize profits
Net present value: Kingston, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $814,322, $863,275, $937,250, $1,017,112, $1,212,960, and $1,225,000 over the next six years.
The following table shows how the total cost of producing canisters of peanuts varies with output and capital in the long run in a perfectly competitive industry. Quantity of Peanut Canisters each hour 0 1 2 3 4 5 6 7 8 Total Cost (K=1) (in dollar..
(a.) Is demand elastic or inelastic in the $6-$8 price range How do you know (b.) If the table represents the demand faced by a monopoly firm, then what is that firm's marginal revenue as it increases output from 1700 units to 2300 units
Suppose this the demand for water balloons fit the function D(P, Ps)=.2P^(-.5)Ps^(-.2) where P is the price of water balloons and Ps is the price of super soakers (an advanced squirt gun technology). Based upon this demand curve, are super soakers..
Assume the following values for figure 5.4a and 5.4b. Q1=20 bags. Q2=15 bags. Q3=27 bags. The markets equilibrium price is $45 per bag. The prices at a is $85 per bag. The price at c is $5 per bag.
Amalgamated Popcorn, Inc. is a fairly small firm selling bags of flavored gourmet popcorn in a popular mall. As shop owner and operator, you have observed that your daily sales tend to follow a pattern that can be stated as: QP = 500 - 100PP + 1.2..
When the government imposes a price floor = $20, disequilibrium between quantity demanded and quantity supplied results in. Consider a market where demand is D: P = 30 - Q and supply is S: P = 0.5Q. 1. Equilibrium quantity Qe is
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