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Suppose a country can produce a maximum of 20,000 jumbo airliners or 2,000 aircraft carriers. ( a ) What is the opportunity cost of an aircraft carrier? ( b ) If another country offers to trade six planes for one aircraft carrier, should the offer be accepted? ( c ) What is the implied price of the carrier in trade?
If the government imposes a $1 per-unit tax, how do the marginal, average total, and average variable costs change? What if instead the government imposes a $100 per-firm tax?
Suppose you were a store manager and wanted to increase total revenue for the store by lowering the price of a good. What type of elasticity would have to exist in order for you to be successful
1. consider the production function y min x1 x2 a. is this production function strictly concave?b. does this
a bond with no expiration date has a face value of 10000 and pays a fixed 10 percent interest. if the market price of
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Suppose the commercial banks keep no excess reserves, and people deposit all their money they receive into the banking system. Suppose the required reserve ratio is 0.05 (5%). Suppose the Federal Reserve wants to increase the monetary base by $2,000,..
Why does a reduction in transportation cost per mile, t, flatten a firm's bid-rent function without changing the intercept?
the pear computer company just developed a totally revolutionary new personal computer. it estimates that it will
Describe a situation of incentive misalignment that you have personally observed (ideally in your personal work environment, but could also be in a relationship, in the consumer marketplace, in public policy, etc.) and generally describe a way to ..
Licensure of physicians means that to some extent, the supply of physicians can be viewed as a vertical line. Explain what this means for the price of physician services. How might this change over time?
bramble ltd makes 2 different types of boots premier and champion each using the same leather and the same skilled
Westside Plumbing and Heating Company is offered a contract for $100,000 to provide plumbing for a new building. The labor and equipment costs are calculated to be $60,000 for fulfilling the contract.
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