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At the beginning of 2011, market analysts expect Atlantis Company, holder of a valuable patent, to earn the following stream of economic profits over the next five years. At the end of five years, Atlantis will lose its patent protection, and analysts expect economic profit to be zero after five years.
Give an example of a positive externality and of a negative externality. How does an externality affect the market outcome.
If the price of 1 pound of cereals is $10 and the price of a sword is $100, what is the wage rate paid to Hobbits in the Shire? How many Hobbits work in the cereal sector? In sword sector? Because of the War of the Ring, the price of a sword went ..
Show the basis for our construction of the output DEMAND function. As an intermediate step explain the construction of the consumption function (as a function of output) and how this becomes a key component of the output supply function.
State the commodity in which each country has absolute advantage and identify the commodity of comparative advantage for each country and indicate the gains to Zambia and Tanzania if the two countries exchanged 6 barrels of oil for 6 yards of cloth.
Suppose that Glitter Gulch, a gold mining firm, increased its sales revenues on newly mined gold from $10 million to $20 million between one year and the next.
Consider an individual aged 22 who is completing a bachelor's degree and is trying to decide whether to continue his education for an additional two years in order to obtain a Master's degree. Expected working life is through age 64.
Find out the average total cost and average variable cost as a function of the level of output. Assuming the firm has the same cost curves in the long-run for q>0 and C (0) =0, how much will it produce in the long-run?
Assuming that the beekeeper gets that amount, what range of payments will the farmer accept (Remember that negative payments are also possible.) Answer the same questions for the fifth day.
Comprise a reconciliation of the differences among the forecasts for GDP and a rationalization for which forecast
Create a graph of that charts out the Federal Surpluses / Deficits and Real GDP in each year from 1965 to 2011. (Be careful with the Surplus / Deficit data, since there is an additional entry to account for a change in how the data ..
Find a market price for hydrogen gas and normalize the energy content compared to the current local price of gasoline. Using octane as an approximation for gasoline energy content, compare the cost per kilojoule of energy of hydrogen to gasoline
If government imposes on the firms in a polluting industry penalties(taxes) that exceed the actual value of the damages done by the pollution, the result is an inefficient and unfair imposition of costs in those firms and on the consumers of their..
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