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Sometimes one's choices may involve catastrophic decisions and bear great risk and yet there can be no clear answer. For example, if a person gets a divorce, shutters a plant, sells a losing investment, or closes their business, will he or she be better off? The following case incorporates nearly all of the material you have covered this far and presents an example of one such choice where nearly all of the alternatives have a significant downside risk.
Review the following information from the article "A Cost-Benefit Analysis of the New Orleans Flood Protection System" by Stéphane Hallegatte (2005):
Part A
Part B
Provide the demand curve in part a, what is the equilibrium price and quantity. If consumer income increases to 30,000 what will be the impact on equilibrium price and quantity.
Please provide explanations for your answers and make sure that the answers are written in your own words.
1. at 7.0 effective annual interest how much should be deposited at the start of each year for 10 years 10 deposits in
Suppose you are the manager of a firm that sells its product in a competitive market at a price of 50. Your firms cost structure is c=40 + 5Q2. The profit maximizing output for your company is;
Pedro loves playing rock music at high volumes. Mario loves opera and hates rock. Unfortunately, they are next door neighbors in an apartment building with paper thin walls.
by installing some elaborate inspection equipment on its assembly line the robot corp. can avoid hiring an extra worker
What will be the hours of work in the hospital and in the clinic to maximize income? What will be the income earned by the physician per day? Show your work.
What is one significant consequence of fractional reserve banking Banks are vulnerable to "panics" or "bank runs." Banks can only lend an amount equal to its deposits. Banks hold a portion of their deposits in gold. Banks can serve the withdrawals..
Illustrate what factors have contributed to increased income inequality an economy along with an equitable income distribution may be efficient as well.
Compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2002 and 2003 from the preceding year. For each year, identify the variable that does not change. Explain in words why your answer makes sense.
There are four basic components of the AD curve, Consumption, Government Expenditures, Investment, and Net Exports. Of these 4-components what one of them is currently negative.
Assume the supply of good X is given through Qsx = 10 + 2 Px . How many units of good X are produced if the value of good X is 20?
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