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Education is often viewed as a good with positive externalities.
a. Explain how education might produce positive external effects.
b. Suggest a possible action of the government to induce the market for education to perform more eminently.
Assume the following data describe the gasoline market: Price per gallon $2.00 2.25 2.50 2.75 3.00 3.25 3.50 Quantity Demanded 32 30 29 28 22 21 20 Quantity Supplied 16 20 24 28 32 36 40 (a) What is the equilibrium price
A building is priced at $125,000. If a down pament of $25,000 is made and a payment of $1,200 every month thereafter is required, how many months will it take to pay for the building. Interest is charged at a rate of 9% compounded monthly.
the Advisability of which action to take depends on how the market will respond to the new product.If demand is high, then its worthwhile to make the extra investment for special facilities and equipment needed to produce the component internally.
Global Investment Group operatesin a perfectly competitive industry with the following Cost andRevenue data: Average Total Cost = $2.50; Quantity sold =9000 Units; Price Per Unit = $3.50; Marginal Revenue = $3.50;Marginal Cost = $3.50:
Delta Software earned $10 million this year. Suppose thegrowthrate of Delta's profits and the interest rate are bothconstant and Delta will be in business forever. Determine the value of Delta Software
Suppose there are 100 firms in the economy. Let us call them firm 1, firm 2, and firm 100. For firm j (j=1,2,100) the labor demand (or equivalently MPN) is Nj = 1 - 0.02w where w is the real wage. Note that labor demand function for the whole econ..
Jehello has defaulted on its bank loans and the bank is suing you, saying that the financial statements presented last year were false and misleading.
Consider options on Bigmove Corporation stock. Suppose that there are call options with a strike price of $75 and put options with a strike price of $65. Which, if any, of the options are in the money if the current price of Bigmove's stock.
Suppose xt = (1:05)t and yt = (1:02)t. Calculate the growth rate of zt in each of the following cases: a) z = xy b) z = x=y c) z = y=x d) z = x^1/2 y^1/2
Based on the change in labor statistics between the two years, make a short assessment with regard to the state of the economy between the two years. 2001: lobor force participation rate 65.9 %, unemployment rate 7.22%,
Calculate the optimal amount of pretzels and soft drinks that minimizes this firm's costs and how many frames do you provide each month?
A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company's anticipated demand over the lifetime of the bridge.If the company were to build t..
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