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Suppose your firm produces electricity by burning coal. Currently it buys central Appalachia 12,500 BTU per ton coal at the market price of $52 per ton. The Board of Directors has informed you that currently the average cost of producing that coal is only $35 per ton. They therefore are considering buying the mine because this would save them $17 per ton of coal burned. (Each 500 megawatt power plant your firm owns burns about 1.4 million tons of coal per year.) They have asked you whether this is a good idea. What do you say?
Reconsider the "double marginalization" model. Show how the upstream firm can use a two part tariff when selling inputs to the downstream firm to achieve the same level of profits as under vertical integration.
an essay about the us feds involvement in the great panic and discussing the housing bubble and sub prime loans.
1. roshima is researching universities where she could study for her mba degree. she is considering 3 major attributes
1. why do you suppose that the market clearing interest rates on bank savings and time deposits have been rising
The economy of the country of Upland is still recovering from a severe recession and still has an unemployment rate close to 9%. Assume that the government's only concern is to achieve full employment. 1. What type of fiscal policy would you rec..
Toys Corporation has estimated its demand and cost function what will be theprice and quantity if Toys would like maximize profits
q1. the key to understanding how the level of real gdp will fall below and oscillate around potential output
Calculate the maximum amount of revenue that the government can raise using a per-unit sales tax on consumers?
Why is an M-form more likely than a U-form to be an efficient way of organizing a university and to organize the schools within it?
john gardener is the city planner in a med size company. the city is considering a proposal to award an exclusive
roberts new way vacuum cleaner company is a newly started small business that produces vacuum cleaners and belongs to a
What is the equilibrium price in this market and how many cups of coffee are traded in equilibrium
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