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EI Paso Water Utilities (EPWU) purchases surface water for treatment and distribution to EPWU customers from EI Paso Country Water Improvement District during the irrigation season. A new contract between the two entities resulted in a reduction in future price increases in the cost of the water from 8% per year to 4% per year the next 20 years. If the cost of water next year (which is year 1 of the new contract) will be $260 per acre-foot, what is the person worth of the savings ( in $/acre-ft) to the utility between the old and the new contracts? Let the interest rate equal 10% per year.
Economic rent represents
Would the employee be better or if, instead of the health insurance, she was given a £100 per week pay increase which would be taxed at 20%.
At a product price of $52, will this firm produce in the short run. Illustrate what will profit or loss be. Complete the following short-run supply schedule for this firm.
what would your advice be to Congress? You must include the implications (the consequences to business and workers) in your analysis?
For each of the following events, graph and explain the short-run & long-run effects on output and the price level, assuming policymakers take no action.
Elucidate a process under which the competing oligopolists can divide the cake so that the two consumers (who are also the producers) are protected from the downfalls of consumers in oligopolistic markets.
Why might an economics professor who is good at fixing cars still prefers to take his automobile to a garage for a tune-up? If the same professor decides to get a tutor for his daughter in economics instead of tutoring her himself does the same princ..
plot the total, average, and marginal functions for both revenue and cost. [Note: Use a two-part graph similar to Figure 2.1 that places the total function in the upper part and the average and marginal functions in the lower half. What is true of th..
Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1.00 per poster. She has fixed costs of $250.00. What is her AFC per poster if she prints 1,000 posters? What is her AFC..
Consider a simple economy that produces only pies. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2011, the money supply was $320, the price of a pie was $8.00, and ..
How can it be said that the factor-content approach “reveals” a country’s factor abundance? What assumptions seem crucial for making this inference? Explain.
Is the equilibrium price higher or lower, or is the change indeterminate. Is the equilibrium quantity higher or lower, or is the change indeterminate.
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