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1. Suppose you wanted to study intertemporal food purchases. You have annual data on food purchases. Would it be valid to assume that food in one year and food in another year are perfect substitutes? Why or why not?
2. A consumer, who is initially a lender, remains a lender even after a decline in interest rates. Is this consumer better o or worse o after the change in interest rates? If the consumer becomes a borrower after the change is he better or worse off?
3. What is the present value of $100 one year from now if the interest rate is 10 percent?
What if the interest rate is 5 percent?
An economist estimated that the cost function of a single-product firm is: C(Q) = 110 + 20Q + 30Q2 + 10Q3.
The market demand for another product you are considering selling is Q(p) = 100 ? ( 1 )p and as the 2. only producer of this product your production costs would be C(Q) = 40Q. Given these market characteristics, what is the Lerner Index equal to (as ..
q1. joes search costs are 7 per search. he wants to buy a dvd player for his wife for christmas and the lowest price
What U.S. government policy has had a distortionary impact on corn production? Describe the far-reaching effects of this policy on the beef industry, illegal immigration and everyday consumer products.
An American consumer buys a French luxury product in New York. In the U.S. balance of payments accounts, this transaction directly appears in
For the Portfolio Project, conduct an analysis of a recent article and provide your evaluation and outcome expectations in an articulate and informative paper that discusses: A minimum of three general economic principles related to the article. Iden..
A monopolist faces the following demand curve: P = 120 - .02Q . The firms cost function is given by C = 60Q + 25; 000: Assume that the firm maximizes prots. What is the level of production, price, and total profit per week? What will be the level of ..
Using your knowledge of the biological dynamics of a fish population, develop a thorough and well-organized essay explaining the relationship between the biological growth of a stock of fish, the optimal economic outcome, and the challenge of attaini..
A recent industry report concluded that the global demand for the good X is expected to increase. Based on the demand projections given in the report Colaba, a firm that produces and sells X, is contemplating hiring more labor to increase production...
Due to the global economic slowdown, we were benefiting from relatively low oil prices.
Make a price quantity chart for each consumer. Then add a column showing the total quantity demanded for a private good. Next show the quantity price chart showing the total demand for a public good.
Calculate the profit maximizing cost per unit if COST MART has an average wholesale cost of $350 as well as incurs marginal selling cost of $100 per unit
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