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Suppose New York wants to build a new facility to replace Madison Square Garden. Assume that the cost of building a new arena in midtown Manhattan is $2 billion and that all the costs occur right away. Also assume that New York will receive annual benefits of $100 million for the next 30 years, after which the new arena becomes worthless. Does it make financial sense to build the new facility if interest rates are 5 percent?
consider the following production function: q= 8lk+ 4l^2-(1/3)^3, Given the following expression for the marginal productivity of each input: MPl= 8K+8L -L^2 and MPk -8L Assuming capital is plotting in vertical axis and labor is plotting in horizont..
indicate that the short run price elasticity of demand for tires is 0.9. If an increase in the price of petroleum /used in producing tires) causes the market prices of tires to rise from $50 to $60
Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a packet of cigarettes currently costs $8 and the government wants to reduce smoking by 20%, by how much should it increase the price
Is the theoretically predicted relationship of the real exchange rate and net exports visible in the figures?
Consider the household optimizationproblem in the Ramsey model. How do the results change if consumers are not allowedto borrow, only to save?
Predict gross benefits if admission is set at $1.00 and Dryville has marginal excess tax burden of 0.25. In answering this question, assume that the fees are used to reduce taxes that would otherwise have to be collected from the citizens of Dryvi..
The diesel powered van costs $39,000 and the gasoline powered one $34,000. They have fuel economies of 11mpg and 7mpg respectively. Gasoline is expected to have an average price of $2.25 per gallon, diesel $2.35 per gallon. The company uses 17.5% ..
to construct a p-chart for a manufacturing process 25 samples of size 200 were drawn from the process. the number of
Include ample explanation for your rewrite. What words, phrases, line breaks, tone, or figures of speech did you change? And, most importantly, to what effect?
Consider the following four debt securities, which are identical in every characteristic except as noted: W: A corporate bond rated AAA X: A corporate bond rate BBB Y: A corporate bond rated AAA with a shorter time to maturity than bonds W and X Z..
Making dresses is a labor-intensive process. Indeed, theproduction function of a dressmaking firm is well described by theequation Q = L - L2/800, where Q denotes the number ofdresses per week and L is the number of labor hours per week.
Will revenues increase or decrease in the short and long runs?
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