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Supposed a proposed public policy could result in three possible outcomes:
1. Present value of net benefits of $4,000,000;
2. Present value of net benefits of $1,000,000;
3. Present value of net benefits of -$10,000,000 (yes, it is a loss).
If the probability of each outcome is, respectively, 0.85, 0.10, and 0.05, should the policy be pursued or not? Explain.
The accompanying table shows a boat manufacturer’s total cost of producing boats. Quantity of Boats Total Cost 0 $ 450,000 1 $ 490,000 2 $ 510,000 3 $ 520,000 4 $ 540,000 5 $ 570,000 6 $ 610,000 7 $ 670,000 8 $ 750,000 9 $ 870,000 1. What is this man..
Explain how would each of these traps impact the production possibilities frontier.
q1. referring to the output and substitution effects explain why an increase in the wage rate for autoworkers will
In an effort to bring inflation down they had set interest rates at 5% in 2018. How should the federal resent react if they desire to bring inflation down to 3%. When will they achieve that goal? (Hint: maintain plenty of decimal places.)
q.the inverse market demand for mineral water is p200-10q where q is the total market output and p stands for price of
Perform an annual equivalence analysis for the two options, and state which is the better option and why. Calculate the present worth of the incremental system (1 - 2): and state which option is better and why.
q1. what steps can a government take to ensure that sustainable development is always considered in assessing which
The salvage value at the end of five years is 0. The potential revenue in any given year is independent of any other year. Determine the mean and standard deviation of the present worth, using an interest rate of 12%.
Why is it not surprising to find that in an oligopoly, which sells a basically undifferentiated product like chicken growth hormone all the firms change prices simultaneously, even if there is no explicit price fixin
Currently a monopolist's MR = $5 and its MC = $10 and it services 10 consumers. An 11th consumer walks in. Should the company service her?
Illustrate effect, if any, do you think fiscal policy had on the changes to these line item spending amounts.
Consider a market where supply and demand are given by QXS = -16 + PX and QXd = 83 - 2PX. Suppose the government imposes a price floor of $36, and agrees to purchase any and all units consumers do not buy at the floor price of $36 per unit
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