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1. Every demand curve must eventually hit the quantity axis because with limited incomes, there is always a price so high that there is no demand for the good. Do you agree or disagree? Why?
2. When excess demand exists for tickets to a major sporting event or a concert, profit opportunities exist for scalpers. Explain briefly using supply and demand curves to illustrate. Some argue that scalpers work to the advantage of everyone and are "efficient." Do you agree or disagree? Explain briefly.
If the cost of capital for both methods is 9 percent, which method should be chosen? Why?
Provide an interpretation of the equation and describe the dynamic process implied by it.
Consider a standard six sided die, numbered 1 through 6 on each face. The probability of rolling each number is 1/6. a.) Let X equal the sum of the values from two independent rolls, then E[X] is b.) What is the variance of one throw of the die
A certain reaction was run several times using each of two catalysts, A and B. The catalysts were sup- posed to control the yield of an undesirable side product
There are only two firms in the widget industry. The total demand for widgets is Q = 30 - 2P. The two firms have identical cost functions, TC = 3 + 10Q. The two firms act as though they were a monopoly. At what price and quantity will this cartel ..
A firm pays in cash $250000 inwages, $55430 in interest on borrowed money capital and $74320 for the yearly rental of its factory building. If the entrepreneur worked for somebody else as a manager, he would earn at most $44500per year
Argue without solving this problem that there exists a unique value function V (k) and a unique policy rule c = π(k) determining the level of consumption as a function of the level of capital stock.
A monopolist sells his good in a market where there is a continuum of consumers of measure 1. Eachconsumer buys either 0 or 1 unit (imagine the good is something like a washing machine? people donot need more than one).
How any years will it take to double the balance in the account If, instead, the investor has the alternative to place the deposit in an account that earns 7% interest compounded annually, how many years will it take to double the deposited fund
Characterize the steady-state equilibrium, and derive a difference equation that explicitly characterizes the behavior of capital stock away from the steady state.
(Assume that the hospital would match its rival's price in the cataract market if the rival were to respond to this bundling arrangement by cutting its cataract price.)
What happens to the expected real interest rate? Explain why the subsequent path of the real exchange rate satisfies the real interest parity condition.
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