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In the liquidity demand for money function, what does Dt represent? What determines the Dt demand for money? What does Da represent and what determines it? In words, how is the equilibrium rate of interest determined?
What is the present value of costs under option A? Under option B? Which is the better option? (b)* Given that she is going to stay in business for another seven years, should she be considering other options??
Although there are many different examples of economies in the world, all of them demonstrate one or more of the four basic types of market structure. For this assignment, in your own words
Because of a recent wave of jewelry store robberies, a city increases police surveillance of jewelry stores. The increase surveillance costs the city an extra $500k per year, but as a result, the amount of jewelry that is stolen falls. Specifically, ..
A project to reduce consumption of cigarettes is proposed. The project will cost $1 Million per year over 20 years and will reduce smoking between 1% and 3% for a period of 40 years. The estimated reduction in health care costs of a one percentage po..
Identify opportunity cost of increase divestment. What will happen to future production possibilities if investment increases.
When students graduate from college, they leave the classroom and begin looking for a job. For each of the labor market statistics, determine if the unemployment rate and the employment population ratio increases/decreases/does not change. Suppose t..
Assume an economy with a coal producer, a steel producer, and some consumers (there is no government). In a given year, the coal producer produces 15 million tons of coal and sells it for $ 5 per ton. The coal producer pays $ 50 million in wages to c..
Assume that in the absence of taxes, the price of x is $2. Compare an ad valorem tax of 10 percent (on p^s), to a per unit tax of 20 cents with respect to (i.e. specify whether it results in bigger, smaller, or equal values of the following):
Martin Company faces a fixed cost of $600,000; an average variable cost of $2. The unit price of the good sold by Martin Company is $3. To break-even, Martin Company has to produce NEED ANSWER quantity of goods. If the company wants a target profit o..
How should a firm estimate and incorporate the uncertainties of inflation/deflation into its overall practices (for example a firm must make long term investment to survive in the long term, so how should it make this decision)?
Explain changes in relative prices that lead to income and substitution effects and state how understanding the effect of an increase in the real interest rate.
What is the difference between a positive externality and a negative extarnality? Give three examples of negative externalities. What divergences arise between equilibrium output and efficient output when negative externalities are present?
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