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Natasha has been told that if she reduces the thermostat setting on the heating system at her home by 1 degree, she will be able to reduce her present annual energy consumption of 5,000 kWh of energy by 20%. In doing so, she will be able to save as much as $250 per year.
a) What is the implicit cost of 1 kWh of energy consumption?
b) If Natasha reduces the thermostat setting by anther degree , she can reduce her annual energy consumption by another 10%. Based on your answer in part (a) , How much more money would she be able to save ?
The market demand curve for this product is estimated to be: Q = 6009 – 25P where Q is the number of plate covers per year and P is in dollars. Cost estimation processes have determined that the firm’s cost function is represented by TC = 120 + ..
Injection molding machines are needed to be replaced at a company. The list is narrowed down to two options based on various parameters like screw diameter, injection pressure, injection capacity, rate, and screw rpm and so on. calculate the PW of th..
In the short run, a monopolistically competitive firm is
What will the effects of the tax be in the short run on industry output and price. Will the price rise by the full ?ve cents in the short run.
Consider the general equilibrium model on local public goods that we discussed in class. We found that the optimal population size
Julie spends all of her $60,000 salary on vacationing and remodeling projects. Her typical vacation costs $2,000 and the remodeling projects cost $4,000 each. What two conditions must be met for Julie to be maximizing her utility? solve the condition..
The composition of pennies is 95% copper and 5% zinc. Coper sells for $3.50 per pound and zinc for $1.00 per pound. It takes approximately 130 pennies to add up to the one pound of total weight. It cost the U.S. Mint $2 to produce 100 pennies. The U...
Discuss how government intervention to address a market failure might worsen the situation. Provide an example of where government intervention does work and why that is so.
Assume that the annual rate of inflation (compounded annually) is 2%. Assume that the market annual interest rate (compounded annually) is 3%. What is the real (i.e. “inflation-free”) annual interest rate (compounded annually)?
Compute the expected value, the expected return, the variance and the standard deviation of an asset that requires a $1000 investment, but will return $850 half of the time and $1,250 the other half of the time.
If there are zero transaction costs, firms prefer to hire employees over independent contractors. Employees shirking on the job is an example of moral hazard. Tournament compensation theory predicts that the pay for a CEO is set at a level equal to t..
Calculate GNP, GDP, and aggregate income. GDP = $ GNP = $ Aggregate income = $ b) What is depreciation in this year? Depreciation = $ c) What is NDP? NDP = $
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