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The following data is available for an economy. Compute the inflation rate (measured from year 1 to year 2) using the GDP deflator and taking as base first year 1 and then year 2
Price of Peanuts in Year 1 $1.60Quantity of Peanuts in Year 1 275Price of Beer in Year 1 $2.10Quantity of Beer in Year 1 120
Price of Peanuts in Year 2 $1.65Quantity of Peanuts in Year 2 270Price of Beer in Year 2 $2.05Quantity of Beer in Year 2 100
Suppose the consumption function is C = $500 billion + 0.9Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with
If you install the system, your insurance carrier will reduce your annual premium each year for the 10 year useful life of the system. Your insurance premium is due at the beginning of the year and you expect to save $350 the first year.
A contractor purchases a piece of equipment for $26,000. The equipment requires an average expenditure of $9.25 per hour for fuel and maintenance, and the operator is paid $15.50 per hour to operate the machinery. Find the average cost function.
If the industry is regulated and the regulatory authority forces Widget Corp. to earn only a normal return on investment (which is included in its cost function), what is the resulting equilibrium price and quantity. Where W represents the number ..
J.C. Olson & Co. had earnings per share of $8 in year 2006, andit paid a $4 dividend. Book value per share at year's end was$80. During the same period, the total retained earningsincreased by $24 million. Olson has no preferred stock, andno new c..
In a two-player, one-shot simultaneous-move game each player can choose strategy A or strategy B. If both players choose strategy A, each earns a payoff of $500. If both players choose strategy B, each earns a payoff of $100.
When the colts won the super bowl the demand for peyton manning's jersey was: P = 210 - 0.002Q with a corresponding marginal revenue of: MR = 210 - 0.0004Q IF the marginal cost of producing a jersey is $10, how much are the trademark licensing rig..
GOOD Price yr 1 Quantity of Goods year1 Price yr2 Quantity of goods yr2 Quarts of icecream $6 4 $6 6 Bottles of shampoo $4 2 $4 3 Jars of PeanutButter $3 4 $3 3
Labor Supply a. Ann's utility can be represented by the function: U (C,L) = ln (C-10) + 3/5 ln(L). She has 16 hours/day to divide into work (H) and leisure (L). She has no unearned income. Derive the formula for her Marginal Rate of Substitution a..
A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. What is profit.
Suppose there are n identical firms in a market. Each firm's cost function is given by C = 240+ 15q2, where q is the amount that an individual firm produces. This means that an individual firm's marginal cost is given by MC = 30q. Also, the marke..
a) the market value of all final goods and services produced withing Wrexington in 2006 is what B) Gross national product for Wrexington in 2006 is what c) Net national product for Wrexington in 2006 is what d)National income for Wrexington in 2006 i..
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