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Fireworks as Public Goods. A three-person city is considering a fireworks display. Bertha is willing to pay $100 for the proposed fireworks display, Marian is willing to pay $30, and Sam is willing to pay $20. The cost of the fireworks display is $120.
a. Will any single citizen provide the display on his or her own?
b. If the cost of the fireworks display is divided equally among the citizens, will a majority vote be in favor of the display?
c. Describe a transaction that would benefit all three citizens.
you have purchased an equipment costing $20,000. the equipment will be used for two years, and at the end of two years, its salvavage value is expected to be 10,000. the equipment will be used for 6,00o hours during the first year
Suppose that the marginal product of the last worker employed by the Delicious Ice Cream Company is 300 units of output per day and the daily wage that the firm must pay is $50, while the marginal product of the last ice cream machine
The Commerce Department said gross domestic product, the broadest measure of goods and services produced in the USA, fell at a 0.3% annual rate in the third quarter. Consumer spending, two-thirds of economic activity, plummeted at a 3.1% rate-the ..
If you invest $499,000 and you have an annual expense of $45,000 in year one which increases by $9,900 each year there after. Annual revenues are $199,000 each year. What is the Present Worth of the operation, and the Annual Equivalen
Are the differences in rates of return in (d) consistent with the uncovered interest parity condition? Why or why not?
A call to action that describes what you want readers to do. Should they contact a policy maker? Change their behavior? Join a group?
In an article saying that Americans are not saving as much asthey were 20 years ago. They claim 20 years ago the average savingswas 20 percent of disposable income and predicted that it woulddrop to 5% in less than 5 years.
A major marketing company is interested in evaluating the return to television advertising on sales. For that they want to use the following simple linear regression model: where qi is measured in millions of dollars, and Ai is a binary variable eq..
How many units of pollution rights would be purchased and by the two participants in this market?
Suppose we have two countries, the United States and Mexico, and one good-computers. Assume the following for each country: United States: Qd = 5000 - P and Qs = 2P - 1000 Mexico: Qd = 5000 - 2P and Qs = P - 2000
If policy succeeds in maintaining full employment, what happens to inflation?
Suppose a wage tax that reduces the wage to W = $12 is imposed. By how much is the supplier's surplus reduced at the new equilibrium?
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