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The community of Upper Snowshoe has expanded its winter tourism very rapidly. Three years ago, it built a new 16,000 kW power plant for $4,500,000. The local construction cost index was 157 at that time and has risen to 170 now. What is the estimated cost of a 20,000 kW power plant now? Assume a cost capacity factor of .88.
What happens with no diminishing returns? Consider a Solow model where the production function no longer exhibits diminishing returns to capital accumulation. Draw the Solow diagram in this case. What happens to the growth rate of per capita GDP over..
In terms of demand and supply shifts, what do you think were the supply, demand and equilibrium effects of this. Suppose that last year the price of peanuts fell and the quantity sold increased. Using supply and demand analysis explain how these chan..
How does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil? Explain, using economic terms, why this is so.
Other things equal, increasing home prices tend to:
Suppose you are given the following Total Product Function: Q=100 K^3/2 L^4/2 M^4/7 ,where Q is total output or units produces; K, capital; L, labor; and M, materials.; that is, this is a input factor production function. Find and interpret the outpu..
q.the news headlines during late 2012 and early 2013 were predominantly encompassed by the numerous deliberations
A firm’s total cost function is TC = 2q^2 + 5q + 10 . The firm is a price taker and the market price for its product is $25. The firm also receives a subsidy from the government because it is operating in a high tech industry and the government encou..
Canada has a private market for the provision of health services, and until about 1970, spent the same % of GDP as the US on healthcare. Since that time, however, the rate of healthcare inflation in Canada is far lower than in the US. Does this mean ..
Two similar farms could have the same return to management but different net farm income due to:
Suppose that two countries, initially in autarky, decide to create a single market. For simplicity, assume that in both economies there is only one product. Demand for this product is given by D(i) = S(i) (a – p(i)) (for i = 1, 2), where S(i) is a me..
Given what you know about the likely effects of climate change, how are people in different countries likely to value efforts to reduce the rate of global warming?
Your friend makes half of your salary and pays 20% in income taxes. Elucidate rate most likely would be your income tax rate.
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