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In the numerical example given in the text, the inverse demand function for the depletable resource is P = 8 -0.4q and the marginal cost of supplying it is $4. (a) If 40 units are to be allocated between two periods, in a dynamic efficient allocation how much would be allocated to the first period and how much to the second when the discount rate is zero? (b) What would be the efficient price in the two periods? (c) What would be the marginal user cost in each period? Submit your answers, showing allwork, to the assignment dropbox.
Now Assume the theater increases the number of its ads to 250. Should the theater increase its cost following this ad campaign.
For each scenario, calculate equilibrium price and quantity, total consumer surplus and total producer surplus.
Laptops have also become easier also cheaper to produce as latest technology has come online.
What would happen to his attempt to attain a blanaced budget? How would the President tell that his economy is approaching equilibrium or getting better?
Analyze the consequences of such a bill and whether or not you would personally favor it. Consider all the costs involved in your analysis.
Discuss how government intervention to address a market failure might worsen the situation. Provide an example of where government intervention does work and why that is so.
Assume that the market wage rate is $150 per day. Illustrate what rule should leadbelly follow to hire the profit-maximizing amount of labor.
The Department of Public Works also Highways (DPWH) is considering the construction of a new highway through a scenic rural area.
The existing equipment will be sold for $6,000. Illustrate what is the first cost that should be used.
Michael spends $10 a month on both Pez dispensers and Superman action. His marginal-utility-to-price ratio for the Pez dispensers is 40.
Congress cannot dictate how many workers industries hire at mandated wage. Given this fact, Illustrate what are effects of this law. Specifically, illustrate what happens to employment, output and total amount earned by workers.
The firm is going to borrow the money for its capital purchases. The interest paid on the debt can be added to accounting costs. Suppose it turns out that the present value of this expense is .10 for every dollar of capital purchased. What is the ..
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