Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Islandia is a completely isolated island that has a fixed stock of 100,000 tons of coal. Islandia will survive for two periods. Consumers in Islandia having a declining marginal benefit of coal consumption in each period. The curve is constant in real terms over time. Note: No numerical answers
(a) Assume the real interest rate in Islandia is 0%. Draw a diagram illustrating the efficient allocation of Islandia's coal stock across the two periods. Briefly explain your diagram
(b) Now assume the interest rate in Islandia is 5%. In your diagram, illustrate how the efficient allocation of Islandia's coal stock will change from your answer in (a). Explain the difference.
(c) Suppose that the stock of coal in Islandia is controlled by 10,000 individual owners, each of whom owns 10 tons of coal. Coal is purchased by a large number of individual consumers. The marginal cost of extracting and transporting coal is constant. All owners will live for both periods and there are no government regulations governing the sale of coal. How will Islandia's coal stock be allocated between the two periods? Why? Explain with reference to the incentives facing the individuals in the market. Hint: what type of market does this indicate?
q. macon farms 6 coupon rate semi-annual payment 1000 par value 12 year bonds currently sell at a price of 814.20. if
profits associated with polluting for friedman inc. are pi 40q - 2q2 where q pollution emitted in tons and profits
Money Definitions. To answer the following questions, refer to the money definitions and relationships 1: Total currency = (currency in circulation) + (vault cash) 2. Total reserves = (vault cash) + (reserve deposits) 3. Monetary Base (MB) = (currenc..
Assume that at price index of 154, the quantity demanded of Real GDP is 9,000 billion worth of goods and services. Elucidate do these data represent aggregate demand or a point on aggregate demand curve.
When the price of bubble gum is $0.50, the quantity demanded is 400 packs per day. When the price falls to $0.40, the quantity demanded increases to 600. Given this information and using the midpoint method, you know that the demand for bubble gum is..
q.the warren amp smith company manufacturers commercial zippers of two kinds kind x and kind y. its production
first assume that all us produced wheat is consumed domestically and there are no wheat imports. next assume that the
Profit max level of output. Quantity firm will minimize average total cost. Illustrate at what price will y shut down.
Cater enterprises can issue floating-rate debt at LIBOR + 2.50% or fixed rate debt at 9.50%. Brence Manufacturing can issue floating-rate debt at LIBOR + 4.60% or fixed rate debt at 11.00%. Suppose Cater issues floating-rate debt and Brence issues fi..
An important key to the American victory in the South was the
A manufacturing firm has received a contract to assemble 1000 units of test equipment in the next year. The firm must decide how to organize its assembly operation. Skilled workers, at $33 per hour each, can individually assemble the test equipment i..
Question Douglas and Dena paid the following amounts of interest during 2010: Calculate the amount of their allowable deduction for investment interest for 2010. Calculate the amount of Douglas and Dena's total allowable deduction for interest for 20..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd