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Suppose the individual demand for rides at an amusement park is represented by the demand function y = 10-p , where y is the number of rides and p is the price per ride.
The amusement park incurs a constant marginal cost of $2 per ride. Suppose, in order to maximize profit, the amusement park practices a two-part tariff. How much will the park charge per ride and what will be the entrance fee?
Barry's utility function is U(W) = W^2. Carl's utility function is U (W )= sqrt(W) . Each has wealth of only $100. An investment of that $100 has a 10% chance of netting $1,000 and a 90% chance of netting a loss of that $100.
$4,000 were deposited at time 0 in an account that pays an interest of 10% compounded annually. how much should be withdrawn at the end of period 2 to have $4,000 at the end of period 4 available in the account
In a country, output is produced with labor and physical capital. The production function in per-worker terms is y=k^1/2. The depreciation rate is 2%. The investment rate (&) is determined as follows: &=0.2 if y
Your enterprising uncle opens a sandwich shop that employs 7 people. The employees are paid $6 per hour, and a sandwich sell for $3. If your uncle is maximizing his profit, what is the value of the marginal product of the last worker he hired
A cable company has a monopoly over the cable services industry in Rhode Island. The market demand curve for cable is P = 1000 - Q, where Q, the firms output, is here the number of hundreds of households with cable.
Explain why we are using per capita data for food rather than the total value as the dependent variable and examine the residuals of your estimated equation to determine whether any of your years might be considered an outlier in the regression.
Consider the following data on the asset: Cost of the asset, I = $100,000 Useful life, N = 5 years Salvage value, S = $10,000 a. Compute the annual depreciation allowances and the resulting book values
Your loser roommate sits on the couch all day eating pizza and drinking beer. He doesn't have a job, and doesn't consume anything but pizza and beer. Every month, his parents mail him $300 and based on the receipts he leaves lying on the floor.
Does the federal budget deficit ever translate into a multiplier effect through government expenditures that create jobs How did the American Recovery and Reinvestment Act (ARRA) of 2009 have an economic impact
MILK- $1, 100 quarts. HONEY- $2 50 quarts. 2009: MILK- $1, 200 quarts. HONEY- $2, 100 quarts. 2010: MILK- $2, 200 quarts. HONEY- $4, 100 quarts. Compute a Nominal GDP and a Real GDP for each year using 2008 as the base year.
1-Concisely explain the economic role of brokers, dealers, investment bankers and the role of the New York Stock Exchange specialist 2-If a bond dealer bought a $100,000 municipal bond at 92% of par and sold it at 96% of par
1. The three fundamental economic questions of what, how, and for whom: a-exist because of scarcity. b-are much more serious in a socialist system. c-are not serious in a capitalistic system. d-are not relevant in the industrialized world of today.
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