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Elixir Spring produces a unique and highly prized mineral water. The firm's total fixed cost is $5,000 a day, and its marginal cost is zero. Table 1 shows the demand schedule for Elixir water.
Suppose that there are 1,000 springs, all able to produce this water at zero marginal cost and with zero fixed costs. Compare the equilibrium price and quantity produced with the price and quantity produced by Elixir water.
What happens to the expected real interest rate? Explain why the subsequent path of the real exchange rate satisfies the real interest parity condition.
(Comparative Advantage) Suppose that each U.S. worker can produce 8 units of food or 2 units of clothing daily. In Izodia, which has the same number of workers, each worker can produce 7 units of food or 1 unit of clothing daily.
How much profit will she make when maximizing total revenue?
suppose that you are hired as consultant to a firm producing a therapeutic drug protected by a patent that gives a firm
Which sectors of the economy have been affected by it most and if there is going to be any long-term economic impact resulting from it?
Your own in-house staff will be responsible for integration and quality control. Because the software and the PBC are contract items, you must carefully monitor the integration phase.
(Balance of Payments)The following are hypothetical data for the U.S. balance of payments. Use the data to calculate each of the following
Calculate the 99 percent confidence interval for β2 in the earnings function example (b2 = 1.073, s.e.(b2) = 0.132), and explain why it includes some values not included in the 95 percent confidence interval calculated in the previous section.
Earl obtained a loan for 22000 dollars. He will pay it back in 17 months with an interest rate of 8 yearly compunded monthly. Each payment will be $200 larger than the previous payment. Calculate the amount of the last payment.
Assume that an individual consumes two goods, X and Y. The total utility (assumed measurable) of each good is independent of the rate of consumption of other good. The price of X and Y are respectively $40 and $60. Use the following table of total ..
The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit, and an output of 2 million units. The price that consumers are willing and able to pay for the output is $40. If it produces this output, the firm's average ..
How are leakages and injections balanced? Why will demand and supply in the product market be equal if leakages and injections are equal?
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