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Consider the allocation of a delectable resource over two periods. There are Qbar=4 units of the stock available. The total benefits derived from using the resource are defined as TBt= 20qt- (1/2qt^2) and the total cost of extracting the resource is defined as TCt=5qt
What are the values of q0 and q1 that maximize the net benefits of using the resource if the discount rate is 10%? What if the discount rate is 5%?
Now suppose there are Qbar = 30 units of the stock available. How do the answers to part (a) change? What is your intuition?
What is the shadow price in period zero?
Consider a country that produces shirts and autos. Shirts are produced with sewing machines (specific factor) and labor while autos are produced using robots (specific factor) and labor. Labor is mobile between industries. The country is initially..
Illustrate what is most X that can be produced? most Y. Illustrate what is formula for opportunity cost of X in terms of Y in this economy.
The North American Free Trade Agreement (NAFTA) is a trade agreement between the United States, Canada, and Mexico whose purpose is to eliminate tariffs between the countries and promote all aspects of international trade.
A site becomes wildly successful in the United States, and you decide to export overseas. Answer the following:
propose to model his tastes in the following way: For any 2 bundles A and B of "grams of cocaine" and "dollars of other consumption.
The market supply and demand curves in a perfectly competitive market are, respectively: Find the total profit earned at this level of output
Suppose that the cost of a unit of capital is r and the price of a unit of labor is w and the level of output is y. Write down the long-run total cost as a function of w, r, and y.
In a free market, assuming that the expectations of buyers and sellers are accurate, every transaction should involve... Consumer surplus and producer surplus, Consumer surplus or producer surplus, but not both
George and Ellen operate a business and make a profit. Is this good or bad? Would it have been better if they had made a loss? Explain. How do people earn income? If you purse a career and become incredibly rich, have you done so at the expense of ot..
If the mutual fund will average 9% annual return over the course of your career, explain how much can you expect at retirement.
Explain how might knowledge of organizational behavior help the company's frontline store supervisors manage their employees.
The bank you are going to get the mortgage from uses a 28% qualifying rate. How much will you need to put down in order to buy this house?
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