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At a swap meet, there are 10 sellers who are each trying to sell a used 5.7L Chevy engine. Half the engines are in mint condition, with each valued by their sellers at $3,000. The other engines need repair, with each of these valued by their sellers at $1,000. Buyers value a mint engine at $3,500 and an engine that needs repair at $1,600. Sellers know whether their engine is in mint condition or needs repair, and buyers can distinguish between engines in mint condition and those needing repair. How many engines will be sold at the swap meet?
Consider the partial equilibrium setting in which the market inverse demand is given by p(y)=90-2y. Consider that there is a representative firm whose cost function is given by c(y)=4y^2.
If my income increases by 10%, then quantity of public transportation demanded drops by 5%. I can say that income elasticity of my demand for public transportation is negative and that public transportation is a normal good.
Calculate the market demand. Assume that the market price for the good is $4 due to perfectly elastic industry supply. Using the market demand function, calculate the total consumers surplus. Calculate the total consumers surplus using individual ..
What if the price of labour relatively cheaper than capital, for labour is $1 and capital for $1000. Two combination produce save amount of output, one is 10 labour and 10 capital, one is 1000labour and 1 capital. The second one cost the least, Can i..
For the same mass of explosive, what is the ratio of the energy released in a nuclear explosion to that released in a TNT explosion
In the economy of Cape Despair, the subsistence real wage rate is $15 an hour. Whenever real GDP per hour rises above $15, the population grows, and whenever real GDP per hour of labor falls below this level, the population falls.
Explain this tendency of industrial clusters to break up in terms of the theory of external economies.
sales 1990 116 1991 105 1992 29 1993 59 1994 1081995
Tiffany Baking Co. wants to arrange a $50 million in capital for manufacturing a new consumer product. The current financing plan is 60% equity capital and 40% debt capital. Compute the WACC for the following financing scenario.
corporate profitability declined by 20 percent from 2008 to 2009. what performance percentage would you use to trigger executive bonuses for that year why what issues would arise with hiring and retaining the best manager
Discuss the sharing economy from a supply and demand standpoint.
Equilibrium in the market-place means that quantity supplied 'Qs' equals quantity demanded 'Qd'.
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