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Jerome moonlights: He holds down two jobs. The higher-paying job pays w, but he can work at most eight hours. The other job pays but he can work as many hours as he wants. Show how Jerome determines how many hours to work.
What is the total demand curve for the firm What are the marginal revenue curves for the firm What are the monopoly prices and quantities for each group when the firm conducts third degree price discrimination
The consumer price index is 125 in year 1 and 160 in year 2. All inflation is anticipated. If the Commerce Bank of Beverly Hills charges an interest rate of 35 percent in year 2, what is the bank's real interest rate?
The Silicon Light Machines pixel could be made smaller if fewer beams could be used per pixel. Could the Silicon Light Machines display be made with only four beams per pixel? Two beams per pixel? Explain.
Generate new variables for the growth of the real GDP (at constant prices), the growth of labor force and the ratio between external debt and real GDP.
Office building maintenance plans call for the stripping, waxing, and buffing of ceramic floor tiles. This work is contracted out to maintenance firms, and both technology and labor requirements are very basic. Supply and demand conditions in this..
Draw an industry supply curve that reflects the tax you determined in part (d). Show that private producers, forced to internalize their externality by the tax, produce the socially optimal amount.
Discuss the signs and magnitudes of the estimated coefficients and their comparisons to predicted or theoretical signs and magnitudes. What have we learned?
The management is interested in adding another mechanic when the customer's average time in the system exceeds 90 minutes. If business continues to increase, at what arrival rate per hour will an additional mechanic be needed?
Consider the market for rainbow sandals. Suppose average household income increases from $44,000 per year to $61,000 per year. As a result, the demand for rainbow sandals increases from 427 to 535.
After the firm's patent expires, predict the new market output and price. (Assume that competing suppliers have the same economic costs as the original producer.) Compute the resulting change in consumer surplus.
A local widgets firm hires you to analyze their cost structure. The firm's industry is nearly perfectly competitive in all requisite characteristics. The company has given you the short run cost functions from existing data: TC=800 +60Q-4.5Q^2+.15Q..
A machine has an initial cost of $500,000, and was estimated to have a salvage value of $30,000 at the end of its 7 years useful life. The machine is expected to generate annual net savings of $125,000. A loan of $200,000 at 7% interest will help ..
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