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Consider the discrete-time perpetual youth model discussed in Section 9.7 and assume that preferences are logarithmic. Characterize the steady-state equilibrium and the equilibrium dynamics of the capital-labor ratio.
suppose in 2010 the cost of a market basket of goods was 2001. in 2012 the cost fo the same amrket basket of goods was
a. Find the uniform continuous probability for P(X 645) for U(0, 1,000). c. Find the uniform continuous probability for P(30
Hotels tend to charge a lot for phone calls from their rooms. Cell phones endangered this nice little "monopoly" business to the point that average telephone profit per available room at hotels in the United States fell from $637 in 2000 to $152 i..
Automotive Rebuilders, Inc., is considering a new automated assembly line to automate assembly of rebuilt alternators. The new line can be installed for $525,000 today and will have a life of 9 years until technological obsolescence.
you are interested in estimating the following modely aoa2x2 a2x2uhowever you have detected an exact linear
Tom earns $15 per hour for up to 40 hours of work each week. He is pair $30 per hour for every hour in excess of 40. Tom faces a 20 percent tax rate and pays $4 per hour in child care expenses for each hour he works.
Suppose you are a painter, and the price of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform the following
Give a numerical example to show that a monopolist's marginal revenue can be upward sloping over part of its range. Hint: The price on the demand curve is the producer's average revenue. Think of a graphic that shows the possibility of declining a..
1. Suppose the inverse demand curve facing a firm is given by the linear equation P=64-8Q. What is the marginal revenue of the firm's 4th unit of output 2. Suppose the inverse demand curve facing a firm is given by the linear equation P=64-8Q.
Construct a model in the spirit of kinked demand for the setting of an N firm oligopoly.
Suppose you are a manager of a firm that produces products X, Y and Z. You know that there are two different types of consumers, type 1 and type 2, who value your products differently. You also know that there 10,000 type1 consumers and 50,000 typ..
An incumbent firm, Firm 1, faces a potential entrant, Firm 2, with a lower marginal cost. The market demand curve is p=120-q1-q2. Firm 1 has a constant marginal cost of $20, while Firm 2's is $10.
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