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The trees in Forest (another unusual forest - both biologically and in its nomenclature) grow such that the volume of timber at time t can be represented as f(t) = et - 2t. The annual real interest rate is 0.07, and the per-year opportunity cost of using the forest land to grow timber is 36000 platinum hexagons (PH). Each unit of timber can be sold at a price of 900 PH. Tlaloc becomes the owner of the forest at t = 7 years. What is his marginal benefit of waiting another year to cut the trees?
What is the optimal level of pollution P = 2P + P^2 => MC = 2 + 2P CC = 5 - 3P => MC = -3 to find the optimal level of pollution as recommended, we need to set total marginal cost = 0, then I have 2 + 2P -3 = 0 => 2P -1 = 0 => P = 0.5 You have alread..
Suppose the consumption function is C = $400 billion + 0.8Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with ( a ) A $50 billion increase in gov..
Remembering that the change in the capital stock is investment less depreciation, use a calculator or a computer spreadsheet to show how the capital stock per worker will evolve over time in both countries. calculate income per worker and consumpti..
When Iraq invaded Kuwait in 1990, the market price of crude petroleum jumped from $21.54 per barrel to $30.50 per barrel - an increase of almost 42 percent. Your boss is puzzled, because the price increase actually occurred
The market shares below are hypothetical and should not be cited in any paper you write in a future business class. General Motors = 24% Toyota = 20% Ford = 16% Honda = 12% Chrysler = 10% BMW = 7% Hyundai = 5% Nissan = 3% Volkswagen = 2% Suzuki =..
A. Ireland is a very small open economy. Trace the likely economic consequences if the government used an expansionary fiscal policy to stimulate the economy. B. GNP at Current Market Prices for 2007 was 60% higher than the figure for 2000. State a..
Let X be a discrete random variable that is the value shown on a single roll of a fair die. (a) Represent the probability density function f(x) in a tabular form (b) What is the probability that X=4? That X=4 of X=5
a. Use a T-Account to show the impact of this transaction on the FNB's balance sheet. The funds a bank has on deposit at the Fed count as part of its reserves. b. Assume that before receiving the discount loan, FNB has no excess reserves.
suppose tht businesses buy a total of 100$ billion of the four resources(labor, land, capital and entreprenrial ability) from households. If households receive 60$ billion in wages, 10$ billion in rent and 20$ billion in interest
A firm produces output according to a production function Q=F(K,L)=min {2K,4L} a. how much output is produced when K=2 and L=3 b. if the wage rate is $30 perhour and the rental rate on capital is $10 per hour, what is the cost-minimizing input mix ..
A University Employee using the Illinois Self Managed Retirement Plan retires at age 67 with 4 million dollars in his retirement account. If the employee will live 13 years in retirement and earn 4.5% interest on his account balance.
One of life's great lessons is to start early and save all the money you can! If you save two dollars today and two dollars each and every day thereafter until you are 60 years old, how much money will you accumulate
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