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Suppose that the economy improves and the crime rate in West Philadelphia drops, so that the marginal product and average product of a group of 100 police offers is now 55 arrests per hour for any number of police officers. What is the optimal allocation of 500 police officers between the two areas now?
Explain how the Fed's use of its three tools of monetary policy affect supply and demand in the market for reserves and the equilibrium federal funds interest rate.
Assume the two newspapers merge. Illustrate what is the likely post-merger bargaining outcome.
What would this event cause the demand for the dollar to increase or decrease relative to the demand for the pound.
If elasticities for a bottle of water are -0.8 and -1.2 in two different locations and marginal cost is the same, which location is likely to charge higher price for the bottle of water?
A thirty year annuity has end of month payments. the first year the payments are each $120. In subsequent years each payment increases by $5 over what it was the previous year. Find the present value of the annuity if i=3%
If the required reserve ratio were .25, then a $8 million increase in H ("high-powered money") from the Fed could lead to an increase in the money supply by as much as $____ million.
Using the method of Lagrange multipliers to derive Sharifah's demand for brownies and espressos. Explain how many brownies and espressos will Sharifah consume.
q1. jeremy derives all of his utility from consuming milk shakes he devotes hi entire 20 allowance to milk shakes each
During the last year, the demand for books has been falling. At the same time, some industry observers expected that several smaller book manufacturers might exit the market due to the strong competition imposed by Kindle. Use a demand and supply gra..
The book discusses the Efficient Market Hypothesis (EMH) and its three forms. The EMH has a lot to do with information and stock prices. How does information get into prices? How do we know if prices reflect all available information?
A natural monopoly has an incentive to pad its cost of production under which type of regulation?
The price of twinkies fell from 0.80 to 0.70.As a result,the quantity demanded of Ho-Ho's decrease from 120 to 100. Illustrate what would be the appropriate elasticity to compute. compute this elasticity.
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