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Assume that a competitive market has an upward-sloping supply curve and a downward-sloping demand curve, both of which are linear. A tax of size $T is currently imposed in the market. Suppose the tax is doubled. By what multiple will the deadweight loss increase? (You may assume that at the new tax, the equilibrium quantity is positive.)
Suppose that the demand function for apartments in a competitive market is initially D(p)=40-2p and there are 10 apartments. However, after observing how profitable it is to rent apartments, owners construct more houses
What is the marginal product of the third worker? What is the marginal revenue product of the fourth worker What is the marginal cost of the sixth worker? Based on your knowledge of marginal analysis, how many workers should you hire
In China, it takes 100 hours to produce 1 digital camera or 4 hours to produce 1 lb. of wheat. In S. Korea, it takes 60 hours to produce 1 digital camera or 3 hours to produce 1 lb. of wheat. What is China's opportunity cost of producing one pound of..
of this sales revenue he must pay the manufacturer a wholesale cost of $620,000 he also pays wages and utiilty bills totaling $210,000 if he doe not operate this piano business he can work in an accounting firm and recieve an annual salery of $45,..
Can leisure involve economic optimization? Should you choose an assortment of lei: activities within your budget of money and time that maximizes your well-being?
Suppose the firms in the economy were to produce fewer goods and services .How do you think would affect house hood spending on goods and services(use the circular flow model to analyze this question)
The following payoff table summarizes gross profits (before compensation), arising from two different levels of effort and factors outside of the manager's control (stage of the business cycle and resulting sales).
What major religious difference between Latin (Catholic and Protestant) Christianity and Eastern Orthodoxy resulted from their very different political contexts after the 400s?
Compute the price elasticity of demand for pies at the firm's mean price: ($7.50) and mean weekly sales quantity (20,000 pies). Next, compute the cross-price elasticity of demand. Comment on these estimates.
What real-world considerations absent in the problem above might provide reasons to favor an admission fee?
What is meant by statistical inference? What is its function and importance and what is meant by and what is the relationship between a parameter and a statistic?
Determine the Net Present Value of the cash flow at annual interest rates of 15%, 20%, and 30%. At what (interpolated) rate would the NPV become zero What is such a rate called Also, calculate the payback periods
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