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Suppose that the following discrete numbers show the integer values of MWTP and MC as depicted in Figure 4.1. Determine the socially efficient rate of output. Show that at any other output level, the net benefits to society will be lower than they are at the efficient level. (Remember, the marginal cost of increasing output from 4 to 5 units is $9, which is also the amount by which cost decreases in going from 5 to 4 units.)
At a 10% annual interest rate (compounded yearly), what is thepresent value of the cash flows? To receive full credit you mustuse 2 arithmetic gradients. what is the present value of the cash flows
Suppose Market Demand is given by Q=50-2P, Market Supply is given by Q=P-10. Now the government decides to impose a lump-sum unit tax on the producer. The amount of tax will be 3 dollars per unit.
For Question 1-8, consider a competitive market for a good where the demand curve is determined by the demand function: P=5-QD and the supply curve is determined by the supply function: P=QS. Where P stands for Price, QD is quantity demanded and ..
What trade-offs are associated with accepting Gotcha s offer?
A recent newspaper circular advertised the following special on tires: "Buy three, get the forth tire for free-limit one free tire per customer." If a consumer has $500 to spend on tires and other goods and each tire usually sells for $50.
Students of a large university spend an average of $5 a day on lunch. The standard deviation of the expenditure is $3. A simple random sample of 36 students is taken. a. What are the expected value and standard deviation of the sampling distributio..
The cost of producing sofas (S), is given by the cost function C(S)=10S^2+1000, and the marginal cost is given by MC=20S. What number of Sofas will minimize the average cost of production
C) What price will buyers pay after the tax is imposed D) What is the deadweight loss created by the tax E) What is the quantity of the good that will be sold after the tax is imposed
Farma Inc. is working on the development of a new drug to combat Fingulesa. It has identified two strategies to pursue. Strategy one has a probability of success of 40% and strategy 2 has a probability of success of 60%.
Sonic Boom Corporation sells drum sets. At a price of $600 per set, they sold about 500 sets per month. The new general manager for this product, Eli Sticity, decided that the company needed more revenues and increased the price to $700 per set.
From your sketch, determine the approximate solution of - 2x2 - 4x + 8 = 6 and compare your approximate solutions with the exact solution.
Derive the solution to this problem. How do the criteria differ? Use the SVD of the Lj to simplify the comparison of the two approaches.
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