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Consider the previous exercise and now suppose both types of residents can migrate to the other district.
a. Which residents will move?
b. What will be the equilibrium distribution of residents?
c. Are there still residents unhappy with the amount of local public good?
d. Is the provision of public good ancient (according to the Samuelson rule)? Explain why or why not.
what type of slope do you think an indifference curve would have? Why?
Suppose the demand curve for a monopolist is QD = 500 - P and the marginal revenue function is MR = 500 - 2Q. The monopolist has a constant marginal and average total cost of $50 per unit. a. Find the monopolist's profit-maximizing output and price..
Acme Container Company produces egg containers that are sold to egg distributors using capital and labor. At Acme the marginal product of labor is: MPL=15 while the marginal product of capital is: MPK=10. Workers at Acme earn $10 hour (w=$10), whi..
Let C1x2 = 2x2 + 300x + 50 be the cost of producing x items. What is the cost of producing the 89th item? Give both the exact and approximate answers.
Ford offers a 3-year or 36,000 mile warranty on the Explorer car. Consumers must pay for extended warranties beyond the manufacturer's warranty period. The Auto Club offers an extended warranty for a Ford Explorer in Hanover, New Hampshire, at a p..
Production engineers at Sinotron believe that a modified layout on its assembly lines might increase average productivity (measured in the number of untis produced per hour). However, before the engineers are ready to install the revised layout o..
Determine how much would be purchased at prices $10, $20, and $30.
Could this lead to increased inequality for entertainers? Discuss. (Related to Application 2 on page 164.)
Suppose for an economy the nominal GDP for 2005 is $1,000 million, and the nominal GDP for 2006 is $1,281 million. The GDP chain price index for 2005 is 100, and the GDP chain price index for 2006 is 105.
Analyze tax issues regarding corporate formations, capital structures, income tax, non-liquidating distributions, or other corporate levies - Create an approach to tax research that results in credible and current resources.
determine the best monthly production capacity for the next 12 months, not the number of workers required).
Consider the market for rainbow sandals. Suppose average household income increases from $44,000 per year to $61,000 per year. As a result, the demand for rainbow sandals increases from 427 to 535.
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