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Suppose that there are only two fishermen, Zach and Jacob, who fish along a certain coast. They would each benefit if a lighthouse were built along the coast where they fish. The marginal cost of building each additional lighthouse is $150. The marginal benefit to Zach of each additional lighthouse is 90 - Q, and the marginal benefit to Jacob is 40 - Q, where Q equals the number of lighthouses. What is the efficient number of lighthouses?
The government of a nation established a price support for wheat. The government’s support price has been above the equilibrium price each year since, and the government has purchased all wheat over and above the amounts that consumers have bought at..
Concerning a country's business cycle, which of the following situations is commonly associated with large or growing current account deficits?
A school is overcrowded and there are three options. The do-nothing alternative corresponds to continuing to use modular classrooms. The school can be expanded, or a new school can be built to "split the load" between schools. What is the incremental..
The largest proportion of M1 is made up of
A large firm has two divisions: an upstream division that is a monopoly supplier of an input whose only market is the downstream division that produces the final output. To produce one unit of the final output, the downstream division requires one un..
Seth is a competitive body builder. He says he has ti have his 12 oz package of protein to " feed his muscles" every day. On the basis of this information, what can you conclude about his price elasticity of demand for protein powder?
Consider the following utility of wealth function: U(W) = 25*W0.3 You currently have $10,000. There is an 8% chance that you get sick, in which case you lose half of your wealth ($5,000). What is your expected wealth? What is your expected utility?
What are the advantages and disadvantages of regression models in comparison to using a computerized regression routine.
Explain why is the index of industrial production an appropriate coincident indicator. Why is the average prime rate charged by banks an appropriate lagging indicator.
Executive officers within an organization will often feel compelled and tempted to emphasize short-term results—net income for the current year—over long-term
The manager of Dixie Furniture Company estimates that the daily output of her factory (in thousands of dollars) Q is given by Q = 2x^1/4y^3/4 where x is the amount spent on labor and y is the amount spent on capital (both measured in thousands of dol..
Describe two (2) reasons why The Coca-Cola Company would choose to protect its soft drink formula as a trade secret, as opposed to using another form of intellectual property protection (for example, a patent).
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