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A small town in Florida is considering hiring an orchestra to play in the park during the year. The music from the orchestra is nonrival and nonexclusive. A careful study of the town's music tastes reveals two types of individuals: music lovers and intense music lovers. If forced to pay for an outdoor concert, the demand curve for music lovers would be Q1 = 100 - (1/20)P1 , where Q1 is the number of concerts that would be attended and P1 is the price per (hypothetical) ticket (in dollars) to the concert. The demand curve for intense music lovers would be Q2 = 200 - (1/10)P2 . Assuming the marginal cost of a concert is $2800, what is the efficient number of concerts to offer each year?
Solve for the equilibrium price 'P'
Give two examples of variables that you would expect to be positively correlated. For each example, explain whether a causal relationship exists between the two variables.
You are an economic consultant to a city that just imposed a payroll tax of $1 per hour of work. This payroll tax is paid by workers through a payroll deduction: For each hour of work, the employer deducts $1 and sends the money to the city govern..
Peter Minuit bought an island from the Manhattoes Indians in 1626 for $24 worth of beads and trinkets. The 1991 estimate of the value of the land on this island was $12 billion (1 billion = 109). What rate of return would the Indians have received ..
The state's fish and game department has a capital budget of $9million. What is the government's opportunity cost of capital if ithas the following projects to consider What does this indicateabout which projects should be done
In each case, indicate whether the effect is through A, through K, through H, or through some combination of A, K, and H. A is the level of technology, K is the level of capital stock, H is the level of the Hu- man capital stock.
Define power as used in management of business. Define power as used in management of business.
what is the opportunity cost of a bottle of root beer
If the Federal Reserve increases the money supply, what will happen to the AS-AD diagram you drew in part (a)? Will equilibrium output move closer to the natural level?
On the planet Omicron Persei 8, government spending is $1000, net taxes are $1200, and planned investment is $1400. Consumers spend according to the equation C = 100 + 0.8Yd, where Yd represents disposable income.
In what ways does our trade model require further extension?
You want to start a company, and are trying to decide between two different industries. You are doing your final research before you write your business plan. Industry A has 20 firms and a Concentration Ratio (CR) of 30%
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