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Suppose the gain to an innovating firm is $200,000 a year and the patent the firm obtains has a life of 20 years. The interest rate is 10%. What is the present value of innovation to the innovating firm? In a patent race, what might each firm be willing to spend on research and development?
The White Company is a member of the lamp industry, which is perfectly competitive. The price of a lamp is $50. The firm’s total cost function is TC = 1,000 + 20Q + 5Q2 where TC is total cost (in dollars) and Q is hourly output. What is the firm’s ec..
Illustrate what were some of the marginal benefits that the city would derive as the result of keeping this project alive.
Suppose the People's Bank of China wishes to peg the rate of exchange of its currency, the Yuan, in terms of the U.S. dollar. In each of the following situations, should it add to or subtract from its dollar foreign exchange reserves? Why?
When a producer makes more goods at every possible price. The theory of production deals with the relationship between the factors of production and. Maximum profits are made when marginal revenue. One advantage of e-commerce is that
By raising and lowering short-term interest rates to keep inflation moving at a steady pace, many central bankers and academics thought they had finally found a monetary policy solution to conquer booms and busts of the business cycle.
If a two linear demand curve run through a common point than at any given quantity the curve that is flatter is more elastic? Whether buyers or sellers bear the majority of the tax burden depends on who initially imposed the tax?
Which of these did the new Dodd-Frank act to do something to address:
Suppose that one must divide $1,000 among 100 students. Which divisions are efficient?
How could you graphically illustrate economic profits made by a perfectly competitive industry, a monopolist industry and a monopolistic competitive industry.
Assume a perfectly competitive firm is producing a level of output at which MR
Consider a finite set of prizes X and probabilities P on them. Suppose that an expected utility maximizer's preferences > on P have an expected utility show with utility function on prizes u : X->R.
Economists use the word "capital" to mean
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