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Real Disposable Income Planned Real Consumption 0 3,000 2,000 4,400 4,000 5,800 6,000 7,200 8,000 8,600 10,000 10,000 12,000 11,400 14,000 12,800 Refer to Table 12.1. The table gives the combinations of income and consumption for a college student for a year. What does planned real savings equal when real disposable income equals $6,000?
A product comes with a 3-year warranty. Repair costs are expected to average $3500 per year, beginning in year 4. The interest rate is 10%. Determine the present worth of the crane's repair costs over its 15-year life.
The consumption bundle and prices for years 0 and 1 for Sam are shown below: Item Q0 P0 Q1 P1 Wine 45 $5.00 60 $3.50 Bread 120 $2.00 90 $2.50 a. Using the market basket in year 0 and setting the CPI for year 0 = 1.00, calculate the CPI for year 1
Two airlines, A and B, are deciding to choose whether Atlanta or Chicago should be their major hub. Given the diagram here, find all equilibria of this game. Airline A Atlanta..
Semiannual deposits, beginning with $500 and increasing by $100 with each subsequent deposit, are made into a fund paying a nominal 10 percent per year compounded continuously. What will the fund amount to after 7 years
Now suppose one big firm comes and buys out all of the firms in the cartel. This monopoly somehow miraculously is able to perfectly price discriminate. How much will this firm produce What will be the deadweight loss created by this monopoly
Suppose the firms colluded to fix output at QS = 90 and QW = 70. Fill in the missing price and profit information in the payoff table below, where the other output choice is the output for each firm that you determined above.
the government wants to adopt a fiscal stimulus, but is worried about raising the budget deficit, so, it decided to raise expenditure and taxes by $200 each, what will happen to equilibrium GDP? Creat a new multiplier model graph and show separate..
Derive the rm's marginal product of labor curve. Derive the rm's average product of labor curve. If the rm has an output quota of 5,120 widgets, how many laborers must it employ in the short-run to achieve this level of production?
The state Medicaid agency has set a rate of $5.50 per visit for all Medicaid enrollees who visit a physician. Each physician also has private paying patients. The demand curve for each physician can be characterized as follows, and physicians can ..
Liliana Alvarez's employer offers its workers a two-month paid sabbatical every seven years. Liliana who just started working for the firm, plans to spend her sabbatical touring Europe at an estimated cost of $25,000.
it also gives each economy's average annual growth rate over this period. for example, real GDP per persion in senegal was $1,776 in 1960 and actually declined to $1,571 by 2000. Senegal's average annual growth rate during this period was -0.31%
There is only one gas station within hundreds of miles. The owner finds that when she charges $3 a gallon, she sells 199 gallons a day, and when she charges $2.99 a gallon, she sells 200 gallons a day. What is the marginal revenue of the 200th gal..
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