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From kaldor-hicks efficiency point of view, discuss the importance of the level of compensation in the context of eminent domain. What are the efficiency implications of errors in determination of compensation?
If overseas producers can sell in the domestic market Illustrate what is the equilibrium price. Illustrate what is the equilibrium quantity.
The equation to determine total costs is:
q1. elucidate how do the gdp per capitals change after accounting for price indices? explain why is it significant to
If the quantity demanded of a good falls by 2% when income rises by 10%, then:
In class, we discussed a first price sealed bid auction with two bidders. Each bidder’s valuation v was a random draw from the interval [0, 1] according to the uniform cumulative distribution function F(v) = v for 0 £ v £ 1. Now suppose there are n ≥..
What effect wills an increase in interest rates have on supply and/or demand of unskilled labour. Would wage rates increase or decrease.
A firm has enough retained earnings to finance an investment project. For this firm, the market interest rate:
What are the advantages of buying a business rather than starting one from scratch? What are the advantages and disadvantages of owning a franchise?
If the price elasticity of a good is less than 0 but greater than -1, the good is considered _____________ and the company should ____________ price to maximize total revenue.
Suppose that there are two consumers in an exchange economy with two goods. There are total of ten units of each good. The initial endowments for these consumers are (e1x, e1y) for consumer 1 and (e2x, e2y) for consumer 2, where e2x = 10 – e1x and e2..
The spot price of oil is $110 per barrel and the cost of storing a barrel of oil for one year is $3.25, payable at the end of the year. The risk-free interest rate is 6% per annum, continuously compounded. What is an upper bound for the one-year futu..
Two important policy goals of the government and the Fed are to keep unemployment and inflation low, while at the same time making sure that GDP is increasing at an average of 3% per year. It is important to have the right mix of policies and that al..
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