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Suppose the Sri Lanka government awarded contracts to private companies to rebuild the countryâ? Is infrastructure damaged by the tsunami and it based its contracts on a percentage of the cost of the reconstruction. Would this constitute a moral hazard? If so, what would the government need to do to prevent such a problem?
Assuming no population growth or technological progress, find the steady state capital stock per worker, output per worker, consumption per worker and investment per worker given that the rate of saving is 20% and depreciation rate is 10%.
A team of minor league baseball is trying to predict ticket sales for the upcoming season and is considering changing ticket prices.
You are the manager of Taurus Technologies, and your sole competitor is Spyder Technologies. The two firm's products are viewed as identical by most consumers.
What price should DD set to maximize profits? What would output be if DD acted like a perfect competitor and set P = MC?
Illustrate what were some changes of the demand also supply fconditions that lead to the housing market bubble and collapse
How much does the gross price increase in each market
If you can borrow (and lend) money at an interest rate of 8 percent, will the investment be a profitable undertaking? Is the project profitable at an interest rate of 12 per cent? Provide numerical calculations in support of your answers.
make comparision between the situation after both of these changes have happened with the situation before any of these changes have happened.
Illustrate what are the roles of central bank independence and financial market development in budget deficits and inflation.
Price Discrimination: Assume that United Airlines knows that it faces the following demand equations and corresponding marginal revenue equations for its (one-way) SFO to Las Vegas route
Assuming that labor accounts for 80% of country Y's gross domestic product, compute immigrant surplus as a share of national income.
What is opportunity cost? Explain with the help of an example, why assumption of constant opportunity cost is very unrealistic? Explain law of demand with the help of a demand schedule and demand curve.
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