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The U.S. Department of Transportation reported the results of a survey of driving safety. In a random sample of 1000 drivers, 275 were using their cell phone. Compute and explain a 99% confidence interval estimate of the population proportion of drivers who use their cell phone while driving.
A price taking firm chooses its inputs to maximize long-run profits. Labor and capital are substitutes in production and both exhibit decreasing returns to scale, q(L, K) = L^(1/2) + K^(1/2) . The output price is 100 and the price of each of the inpu..
It is often claimed that an added benefit of pollution abatement projects sponsored by the government is the increase in employment generated by these projects. Evaluate this by answering the following. Where do governments obtain the funds to undert..
Suppose that Apple first announces a quantity of iPhones, then Verizon announces a price for data plans, then Apple announces a price for iPhones. What are those quantities and prices? Suppose Apple has a monopoly on iPhones and Verizon has a monopol..
When a fine caterer produces 30 catered meals, its marginal cost and average variable cost each equal $10. Therefore, assuming normally shaped cost curves, at 29 meals:
compute the arc cross elasticity of demand?
Draw a graph of money market equilibrium. Is the real or nominal interest rate on the axis? Explain why. Let’s say the Fed wants to lower the nominal interest rate. Use your graph to show how they do this. Explain. c. Define monetary neutrality. Expl..
bank prime loan rate imports of goods amp per capita income.briefly explain why the three variables are appropriate
Suppose that the current yield for a 20-year Treasury bond falls below the current one-year bond yield. Which of the following is true regarding the segmented markets theory of the term structure of interest rates in this case?
A monopolist has an inverse demand curve given by p(y) = 12 - y and a cost curve given by c(y) = y2. What will be its profit maximizing level of output? Suppose the government decides to put a tax on this monopolist so that each unit it sells has to ..
who operates the industry as a monopoly and seeks to maximize profits from the sale of computers. Elucidate which of the following is a likely consequence of the monopolization of the industry.
Evaluate the factors involved in making decisions about pricing tobacco products indicating which would be the most influential.
Why do so many members of Congress believe that the federal government should subsidize local projects, such as improvements in bus or subway systems in major cities?
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