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In the Dixit-Stiglitz model in Section 12.4.1, determine the conditions on the function u(., .) in (12.7) such that an increase in N raises the profits of a monopolist.
a. Determine the Equivalent Annual Costs of the two alternatives and recommend the economically superior system. b. Determine a Salvage Value for the Beta system such that the Beta system will have an Equivalent Uniform Annual Cost equal to the Alp..
Julia can fix a meal in 1 hour, and her opportunity cost of one hour is $50. Jacque can fix the same kind of meal in 2 hours, and his opportunity cost of one hour is $20. Will both Julia and Jacque be better off if she pays him $45 per meal to fix..
Graph the new long-run average cost curve, and compare its position with the curve in that question.
When a recession is over, do people start to immediately feel affects of an efficient economy? Use the experience of most recent recession to justify your answer.
20 economists were sampled and asked to predict if the national economy would improve during the next twelve months. Eleven of the economists predicted an increase, two economists predicted no change, and seven economists predicted.
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
The price elasticity of demand for imported whiskey is estimated to be -0.20 over a wide interval of prices. The federal goverment decides to raise the import tariff on foreing whiskey, causing its price to raise by 20%.
Caroline Krause earned a salary of $1,000,000. (a). How much Social Secruity tax did she pay (b). How much Medicare Tax did she pay (c). What is her marginal tax rateon her federal personal income tax
The MSU firm has the production function: q = f(L,K) = 4 L^(1/2) K^(1/2) The market has many firms identical to the MSU firm. The price of capital is r = 4 and the price of labor is w = 1 A. On the graph below: Draw the isoquant for q = 24, and th..
Compute the cost to the government of this operation.
An investor lends $10,000 today, to be repaid in a lump sum at the end of 10 years with interest at 10% (=im) compounded annually. What is the real rate of return, assuming that the general price inflation rate is 2.7% annually.
The historical average had been 6 to 8 percent. Many recent graduates were taking jobs outside law at much lower wages than were typically paid to beginning lawyers. Based on this information, what would be your prediction about lawyers' salaries f..
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