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The market demand for vaccine XYZ is given by P = 36-Q and the supply conditions are P = 20. There is a positive externality associated with being vaccinated, and the real societal value is known and given by P = 36-(1/2)Q.
(a) What is the market solution to this supply and demand problem?
(b) What is the socially optimal number of vaccinations?
(c) If we decide to give the supplier a given dollar amount per vaccination supplied in order to reduce price and therefore increase the number of vaccinations to the social optimum, what would be the dollar value of that per-unit subsidy?
1) what is equilibrium GDP 2) what is the marginal propensity to save out of disposable income 3) what is the average propensity to consume out of disposable income (at equilibrium GDP) 4) what is the value of the expenditure multiplier
1. aggregate output is produced with population of workers grows according to capital stock evolves according to and
Profits University produces student credit hours(y) with two inputs:Professors' hours of work(P) and TA's hours of work(T) according to the production function:f(P,T)=10P^(1/2)*T^(1/4). Both inputs are variable. Suppose professors are paid $80 per..
at a student cafeacute there are equal numbers of two types of customers with the following values. the cafeacute owner
You estimate the operating expenses, including taxes, will be $45,000 for the first year and that they will increase by $3000 each year thereafter. You also estimate that razing the building and selling the lot on which stands will realize a net a..
Power cost per kwh is $0.14. Annual maintenance, taxes and insurance will be 2.5% of the initial cost. a. What is the annual equivalent cost for each motor b. What is the IRR (Internal Rate of Return) on the incremental investment to select the more ..
A city government wants to raise $3 million by issuing bonds. By ballot proposition, the bond's coupon interest rate was set at 8% per year with semiannual payments. However, market interest rates have risen to a nominal 9% interest rate.
First Cost: $500 Uniform Annual Benefit: $122 Salvage Value: $0 (a) Construct a choice table for interest rates from 0% to 100% (b) If the minimum attractive rate of return is 8% which alternative should be selected
A monopolist serves a market in which the demand is P=120-2Q. It has a fixed cost of 300. Its marginal cost is 10 for the first 15 units (MC=10 when 0
Your firm has an opertunity to make an investment of $50,000. Its cost of capital is 12 percent. It expects after tax cash flow for the next 5 years to be the following: Yr1 - 10,000 Yr2 - 20,000 Yr3 - 30,000 Yr4 - 20,000 Yr5 - 5,000
Annual revenue from operations = $290,040 Payments to workers = $160,003 Utilities (electricity, water, disposal) costs = $8,010 Entrepreneur's potential economic profit from the next best entrepreneurial activity = $80,100 Entrepreneur's forgone int..
When control risk is assessed as low for assertions related to payroll, substantive tests of payroll balances most likely would be limited to applying analytical procedures
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