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Given the following price information for a typical market basket of goods purchased by consumers and assume that 2000 is the base year: :YEAR PRICE of market basket2000 $52001 $42002 $82003 $9
1.Calculate the price index for 2000.2.Calculate the price index for 2001.3.Calculate the price index for 2002.4.Calculate the price index for 2003.
Now assume that intermediaries come from a competitive market with an equilibrium price of $8 per unit for their services, that is, any buyer or sellerwho wants an intermediaries services must pay $8 for them.
Weekly demand and cost relations for Sandpiper Products, Inc., are given by the equations P = $180 - $10Q (Demand) TC = $75,000 + $5Q + $7.5Q2 Where Q is the quantity produced and sold per week.
Select three macroeconomic indicators that you feel have greatest impact on operations or considering for Kohls. Discuss and describe why they are important to current or future situation of your organization.
Alice used to work as a teacher but has decided to set up her own cake factory after watching Masterchef. As a teacher Alice earned $50,000 per annum. The cost of materials used to make cakes is equal to $10,000 per annum and in addition.
A factory benefits from discharging effluent, q, into a lake. The marginal benefit function is given by 60-2q. The pollution causes damages to two nearby communities. The marginal damages to Community A are 1q. The marginal damages to community B ..
From 1991 through 2001, Japan experienced a period of economic stagnation and price deflation known as "Japan's Lost Decade." While the Japanese economy outgrew this period, it did so at a pace that was much slower than other industrialized nation..
The utility estimates that by switching to gas, it will save $22,000 per year, starting 3 years from now. At an interest rate of 8% per year, determine the present worth in year 0 of the projected savings that will occur in years 3 to 10.
Suppose that the demand for gasoline is given as P = 3.6-0.002Q where P is the price of gasoline in $ per litre and Q is liters of gasoline per day. If you know that current price of gasoline is $1.3, what is the point price elasticity of demand a..
A movie producer has to decide whether to bid for the film rights of a modestly successful novel. If he bids, he believes there is a 90% chance that he will be successful in obtaining the rights. If the bid is unsuccessful he will have to pay lega..
Government consumption in our model is simply a "waste", that is it does not affect anyone's utility or affect the production process. Use the Pareto Optimality framework. For each of them, solve the social planner's problem and show the equations..
Below is a table with total data for a firm in a perfectly competitive industry. Quantity Total Cost 0 100 10 220 15 300 20 360 25 450 30 600 35 770 40 960 What is the marginal cost and average total cost for the firm at each level of output
Two alternate schemes are proposed for heating this building. "Bottled gas" can be used for floor type furnaces, or electric radiant panels can be installed in the walls and ceiling. It is estimated that the building will be used for 5 years befor..
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