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Suppose that many years ago, one inventor received a patent for orange juice, and then another came forward and requested a patent for lemonade. The first inventor maintained that the orange juice patent should be interpreted to cover all fruit juices, while the second inventor argued that the original patent included only one particular method of making one kind of juice. What are the trade-offs for society as it sets rules for deciding cases such as these?
Jen left a job paying $60,000 per year to start her own florist shop in a building she owns. The market value of the building is $150,000. She pays $40,000 per year for flowers and other supplies, and has a bank account
Suppose that fixed costs increase by $50 but the prevailing market price remains unchanged. Using algebra determine the effects of this change in cost on the profit maximizing output and the optimal profit. Algebraically calculate the profit maxim..
Carry out the exercise in part (c) for all the countries for which you have data. Which country has had the highest proportional increase in GDP per capita since 1970? Which country had the smallest proportional increase? What fraction of countrie..
Using (13.44) and the choice of numeraire in (13.45), set up the household maximization problem in the form of the current-value Hamiltonian (derive the budget constraint explicitly). Derive the consumption Euler equation (13.46).
Explain how you would test null hypothesis that b1=0 in the multiple regression model, Y=b0+b1*X1+b2*X2+b3*X3+u. Also, explain how you would test the joint null hypothesis that b1=b2=0
Brent owns Beck Trucking. Seven years ago, he purchased a large-capacity dump truck for $115,000 to provide short-haul earth moving services. He sold it today for $45,000. Operating and maintenance costs averaged $9500 per year.
On the basis of the information regarding the risk involved in the two projects, you come up with the following probability distributions for the projects:
The current interest rate (at which he is free to borrow and lend) is 5 per cent. This means that if Jack saves one dollar today, he will get 1.05 dollars tomorrow. Also, if he borrows 1 dolalr today, he needs to pay back 1.05 dollars tomorrow.
The first that comes to mind in my area is Entergy. They are like most power companies where they are monopolistic by nature, as you do not get to choose who you purchase power from.
Jones Company operates within a monopolistically competitive industry. The estimated demand for its products is given by the following inverse demand function P = 1760 - 12Q It finance department has estimated its total cost function as
What type of tax is your friend suggesting? What is its appeal?
At the end of the first year's football season, the alumni demandedthat the coach be fired. The alumni agreed to buy hisremaining years on the contract by paying him the equivalentpresent sum, computed using a 12% interest rate.
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