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Q. Consider the application of the demand-revealing process to land assembly that we discussed in class. We defined D as the developer's offer for the combined area of all parcels, ai as the government's estimate of value of parcel i as a share of the value of all parcels Vi as owner i's reservation price for his parcel Wi= aiD - Vi as the amount that owner i is willing to pay to have the developer assemble the parcels if he receives the amount aiD for his property.
Illustrate what is the condition that determines whether or not the developer should assemble the parcels?
What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low.
What is the confidence interval for the proportion of households represented at a town meeting. Survey of households in a small town showed that in 850 of 1,200 sampled households.
Illustrate happens to the amount of debt held by the public. Illustrate what happens to the level of gross debt.
The Solow Growth Model. In 2010, Japan was a large open economy with perfect capital mobility that was at its steady state.
At his current consumption basket, his marginal utility for hot dogs is 5 and his marginal utility for sodas is 3.
What happens to each of these values if the central bank changes the reserve requirement ratio to 3%.
Now? suppose? that? the ?first ?firm? has? a ?capacity ?of ?2 ?and? the? second? firm? has ?a ?capacity ?of ?4.
Assume that the firms form a cartel to maximize total industry profits. Determine the optimum output as well as selling cost for each firm.
Illustrate what would be the new equilibrium price of hoods to the truck manufacturer.
Budget line showing the various combinations of scores on the two exams that she can achieve with a total of 400 minutes of studying.
If the bank compounds interest yearly, explain how much will you have in your account on January 1, 2015
How do prices, output, and profits differ between monopolies and monopolistically competitive firms.
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