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Suppose an assistant professor of economics is earning a salary of $75,000 per year. One day he quits his job, sells $100,000 worth of bonds that had been earning 5 percent per year, and uses the funds to open a book store. At the end of the year, he shows an accounting profit of $90,000 on his income tax return. What is his economic profit?
You could explore the history of Taiwan's semiconductor production, how the industrial cluster was formed, and the potential disadvantages of worldwide production of a certa
Presume, in an effort to increase tax revenue, the federal government imposes a 25 percent tax on cheques written on deposits. Describe thoroughly utilizing the money multipli
For all market conditions that a business can operate in, the marginal cost curve for its costs will select one: Rise in the beginning to reflect the law of diminishing return
A rancher and a farmer are located next to each other. Here are the facts of their situation: There is no fence between the ranch and the farm The cattle enter the farmer's fi
Draw a picture of the two production function relationships you computed in parts (a) and (b) placing output on the vertical axis and labor on the horizontal axis. Verbally
Using demand and supply and competitive analysis, describe what happens to a pharmaceutical company's revenues and profits from an individual drug once it loses its patent pro
Suppose that the distribution of scores on an exam is closely described by a normal curve with mean 100. The 16th percentile of this distribution is 80. What is the 84
Assuming the revenue from a congestion tax is not redistributed to city residents, what effect would a congestion tax have on the residential bid rent curve? If the government
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