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For the purpose of these exercises, let the firm's profits be given by P(x) = 20x - x^2, and let damages be given by D(x) = 2x^2.
Under these situations find:
Level of output x, Producer surplus and net damages
A regulator imposes a unit Pigovian tax on pollution at the level t=2 per unit.
Same as (3), but the government returns to tax revenues collected to the consumers
What is the principal remaining after 15 monthly payments have been made on a $23,000 four-year loan? The annual interest rate is 12% nominal compounded monthly. Please show all steps.
The aggregate-demand curve shows the
Visualize you are a manager for good or service used. From results of the deterioration equation, recommend strategies to either preserve demand if an increase over 3 periods occurs or improve demand
If Evren wishes to make 25 tons of donuts, how many bakers are required given the current level of capital? How much will it cost to produce this (total cost)?
Suppose that the council of economic advisers to President Clinton recommends financing an increase in government spending on infrastructure by $30 billion through raising taxes on individuals with an annual income of more than $100,000. Distinguish ..
If a second McDonald's franchise, Mac Junior, was to move into Obscure City. Elucidate what is the market price that would prevail at equilibrium in a Cournot oligopoly.
Discuss why you would not expect all industries to have a similar relationship to the economy. Give an example of two industries that have different relationships to the economy. Please discuss your findings and how the economy will affect them diffe..
The GDP deflator in 2000 is 100. The GDP deflator in 2010 is 127. If real GDP in 2000 is $10 trillion and nominal GDP in 2010 is $14 trillion, how much has real GDP grown over that time period?
The scale effect is
Suppose you have a cash flow that pays $10 in every period from time 16 to 50 and you face an interest rate of 10%. What is the present worth of this cash flow?
On Juan's 26th birthday, he invested $6,500 in a retirement account. Each year thereafter, he deposited 7% more than the previous deposit. The account paid annual compound interest of 6%. How much was in the account immediately after his 35th deposit..
Some say that there are powers that the Constitution reserves to the States that the Federal Government has intruded upon since the founding of the country. Discuss and provide one example where it could be argued that the Federal Government has intr..
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