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CONSIDER AN ECONOMY IN WHICH THECONSUMPTION FUCTION TAKES THE FOLLOWING SIMPLE ALGEBRIC FORM C=300 +0.75 DI AND IN WHICH INVESTMENT (I) IS ALWAYS 900.00AND THE NET EXPORTS ARE ALWAYS -100.00 GOURNMENT PURCHASES AREFIXED AT 1200 HOW WOULD I FIND THE EQUILIBRUM GDP
In many states with lotteries, people can take their winnings in a single, discounted, lump-sum payment or in a series of annual payments for 20 to30 years. What factors should a winner consider in determining how to take the money
What sum should you deposit into an account to yield 20 year end payments, starting with $10,000 at the end of the first year and increasing by 4% each year at an interest rate of 8% compounded quarterly.
Given: 1 pound of fertilizer (F) produces 20 Spinach plants and 1 pound of Manure (M) produces 300 spinach plants. The price of F=$5 and price of M=$10. Suppose we want to produce 300 spinach plants at the lowest cost possible.
Suppose that as part of the restructuring plan Mitsubishi conducts an analysis of how labor and capital are used in its production process. Prior to restructuring Mitsubishi's marginal rate of technical substitution is 0.15 (in absolute value).
If you used the uncompensated demand curve to calculate the change in consumer surplus, would your calculation be too high or too low?I. Provide a graph showing the initial outcome, the outcome after price change, the income effect, the substituti..
Suppose this the demand for water balloons fit the function D(P, Ps)=.2P^(-.5)Ps^(-.2) where P is the price of water balloons and Ps is the price of super soakers (an advanced squirt gun technology). Based upon this demand curve, are super soakers..
Why is advertising prevalent in many oligopolies, especially when industry demand is inelastic Illustrate your answer by assuming that with advertising, a firm's demand curve has price elasticity of -1.5 and without advertising, it is -2.
A loan of $200,000 at 7% interest will help fund the purchase. The loan is to be repaid in seven equal annual installments including interest. The firm's marginal income tax rate is 39%. The equipment qualifies for MACRS 5-year property.
Currently, at a price of $1 each, 100 popsicles are sold per day in the the perpetually hot town of Rostin . Consider the elasticity of supply. In the short term run, a price increase from $1 to $2 is unit-elastic (Ex=1.0)
If it contracts with a private firm; its profit would be $2 million, $0.7 million, or -$0.5 million with probabilities 0.25, 0.41, and 0.34, respectively. If it contracts with the government, its profit will be $4 million or -$2.5 million with rece..
An asset with an original cost of $100,000 and a current book value of $20,000 is sold for $50,000 as part of a capital budgeting project. The company has a tax rate of 30%. What is the after-tax cash flow derived from the sale of the asset
Edward the entrepreneur takes 2 hours to cut a lawn, and he cuts 1,000 lawns per year. He uses solar-powered equipment (truck and mover) that will last forever -- and could be sold at any time for $20,000.
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