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The trees in Forest F grow such that the volume of timber at time t can be represented as f(t) = 900t - 50t2 + 60t3 + 7t4. (Note that these trees do not follow a typical biological growth function). The annual real interest rate is 0.19, and each unit of timber can be sold at a price of 100 Yap pieces of stone (YPS) net of harvest costs. Assume there is no opportunity cost to using the land to grow timber. At t = 89 years from the beginning of the trees' growth, Imhotep obtained sole ownership of the forest through a surprise bequest. What is the marginal benefit Imhotep would get by waiting to cut the trees for another year?
Elizabeth Pie Company has been in business for 50 years and has developed a large group of loyal restaurant customers. Giant Bakery Inc. has made an offer to buy Elizabeth Pie Company for $5,000,000. The book value of Elizabeth Pie's recorded asse..
During the first year he works, earning $1000; during the second year he is retired. During the first year Ted can save some of his earnings, earning an interest rate of 10%; he can spend his savings (including interest) during the second year of ..
As far as the tax code is concerned, HeadBook will increase its expenses by $5000 in either case. If it pays for the policy, it incurs a $5000 health care expense. If it raises Vanessa's salary by $5000, it incurs $5000 of salary expense.
a. Raw sugar prices rose by 3% and raw sugar consumption declined by 2%. b. A 10% increase in the price of cigarettes reduce smoking among 8th to 10th graders by 10%. c. The price of luxury cars increases by 4% while the quantity demanded decreases b..
A monopolistic firm faces the following demand curve. Q = 7800 -12 P This monopoly's cost function has been estimated as follows: TC = 460,000 + 50 Q a. What price should this monopoly charge to maximize its profit b. What would be its equilibrium ..
Suppose the money supply grows at the rate between periods t1 and t, find seignorage income in period t. Show that seignorage income is monotonically increasing in and bounded above. Find this upper bound in terms of the structural parameters of t..
A grocery store notices that the cross-price elasticity between ice cream and chocolate syrup is -.3. The store is advertising a sale with ice cream prices reduced by 20%. By how much should they expect chocolate syrup sales to increase
(a) How many people participate in the study (b) Calculate the Relative Frequency and enter the results in the above table. (c) Calculate the Midpoint for each class and enter the results in the above table. (d) Calculate the Cumulative Frequency and..
The profitable Palmer Golf Cart Corp. is considering investing $300,000 in special tools for some of the plastic golf cart components. Executives of the company believe the present golf cart model will continue to be manufactured and sold for 5 ye..
Because of a legal settlement over state health care claims, in 1999 the U.S. tobacco companies had to raise the average price of a pack of cigarettes from $1.95 to $2.45. The decline in cigarette sales was estimated at 8 percent.
Suppose that the market (in the graph above) is initially in equilibrium. Assume that consumer preferences shift and people want more of this product, and, at the same time, producers get an improvement in technology which lowers their production ..
Maria can read 20 pages of economics in an hour. She can also read 50 pages of sociology in an hour. She spends 5 hours per day studying. a.) Draw Maria's production possibilities frontier for reading economics and sociology.
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