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It is expected that a pump will incur operating cost of $ 2,000 for the first year and that these costs will increase $ 400 each year thereafter for the 20 year life of the pump. If the money is worth 15 % per year to the firm, what is the equivalent annual worth of the operating costs?
When negative externalities are present, it means that: All externalities: The distribution of surplus received from a subsidy offered in a market where a positive externality is present depends on: Entitlement spending:
Suppose you are hired to manage a small manufacturing facility that produces Widgets. You know that you are operating in a monopolistically competitive market, that is, you are a small part of a large market with many competitors in this market. From..
Consider the following competitive firm in the short run: What is the profit maximizing condition for this firm? Is this firm making a profit or a loss in the short run?
You are an economic consultant for Farmer Perk, who produces raw cotton and sells it in a perfectly competitive market. Illustrate what is Farmer Perk's profit-maximizing level of output.
For the Pittsburgh Development Corporation problem in Section 4.3, the decision alternative to build the large condominium complex was found to be optimal using the expected value approach. In Section 4.4 we conducted a sensitivity analysis for the p..
What owuld be the best expression in graphical form to express any of the one in parenthesis (possible graphs supply and demand, marginal utility, elasticity, price controls or any other graphical analyses. Events ar Price controls (minimum wage, far..
Draw an accurate figure showing how the glass firm minimizes its cost of production. What is the equation of the (long-run) expansion path for a glass firm? Illustrate this path in a graph. Derive the long-run total cost curve equation as a function ..
Suppose you were having lunch with your best friend who just enrolled in an economics class. He was complaining about Explain how irrelevant class was, commenting that he saw no useful purpose for economics.
Describe the difference in economic profit between a competitive and a monopolistic in both the short and long run. Which should take longer to reach the long-run equilibrium?
The recent merger of US Air and American Airlines received both national and local attention. The US Department of Justice contested the merger on the basis it would produce harmful monopoly-like behavior in the airline industry. Develop an argument ..
A nation with a large current account deficit is consuming more than it produces or living beyond its means. Is this necessary bad? What is your judgment for the United States?
Suppose the civilian non-institutional population equals 250,000; there are 132,500 employed persons and 10,000 unemployed persons. How many people are not in the labor force?
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