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There are two types of citizens in Pulmonia. The first type has an inelastic demand for public broadcasting at Q = 8 hours per day; however, they are willing to pay only up to $30 per hour for each hour up to Q = 8. The second type demands public broadcasting according to P = 60 - 3Q.
a) Suppose the marginal cost of public broadcasting is MC = 15. What is the economically efficient level of public broadcasting? Hint: it will help if you draw a careful sketch of the demand curve of each type of citizen.
b) Repeat part (a) for MC = 45.
A good stock-based mutual fund should earn at least 10% per year over a long period of time. Consider the case of Barney and Lynn, who were overheard gloating (for all to hear) about how well they had done with their mutual fund investment.
What Gimbo most enjoys for dinner is eating fig leafs (F) and to accompany his meal with nothing better than an Arak (A) drink on the rocks. His utility function is represented by this equation : U=33(F)(A^2). Gimbo has $100 to spend on dinner dur..
Use the given equation and determine the demand equation as a function of Ps if the price of other pastas (Po) is $2,
when does an auditor do analytical procedures?
Why might the purchase of capital (instead of the rental of capital) affect a firm's profit maximization decision?
observational cross-sectional data set that would allow you to answer this question (note that this will probably be a primary data set, that you are responsible for collecting)
Characterize the asymptotic equilibrium of the modified Solow/AK model mentioned in Section 2.6, with a constant saving rate s, depreciation rate δ, no population growth, and an aggregate production function of the form
Many retirement funds charge and administrative fee equal to 0.25% on managed assets. Suppose that Alexx and Spenser each invest $5,000 in the same stock this year. Alexx invests directly and earns 5% a year. Spenser uses a retirement fund and ear..
A verbal, everyday argument enables academic readers to access summaries other viewpoints.
A farmer uses M units of machinery and L hours of labor to produce C tons of corn. A) Suppose the production function is C = L(0.5) x M(0.75), does the production function exhibits increasing returns to scale, decreasing returns to scale or consta..
How do neighborhood associations and homeowners' covenants control negative externalities and encourage (or require!) positive externalities? What are the advantages and drawbacks of this approach from the perspective of the individual homeowner?
Growth Fertilizer purchases a gravity settling tank by borrowing the $50,000 purchase price. The loan is to be repaid with four equal annual payments at an annual compound rate of 15%. It is anticipated that the tank will be used for 9 years and t..
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