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Pure gasoline has an energy density of 115,600 BTU per gallon, while ethanol has an energy density of 75,670 BTU per gallon. Gasoline cost $3.70 per gallon.
What would the price of E85 (85% ethanol, 15% gasoline) have to be for its cost to be the same as that of pure gasoline?
Consider an industry with 2 firms, each having marginal cost equal to zero. The inverse demand function facing this industry is P(Y) = 100 – Y where Y = y1 + y2. What is the competitive equilibrium level of industry output? Calculate the cartel amoun..
Define inflation. Assume that you live in a simple economy in which only three goods are produced and traded: Cashews, pecans and almonds. Suppose that on January 1st 2105, cashews sold for $12.50 per pound, pecans were $4.00 per pound, and almonds w..
The inverse demand function for mangos is defined by the equation p = 91 − 5q, where q is the number of crates that are sold. The inverse supply function is defined by p = 3 + 6q. In the past there was no tax on mangos but now a tax of $44 per crate ..
How do differences in manufacturing, costs affect which industries would be most likely to be affected by the removal of patents?
The Department of Public Works also Highways (DPWH) is considering the construction of a new highway through a scenic rural area.
If the required rate of return on this stock (ks) is 12%, what is the current price of Mummeball's common stock?
What are the impacts of an exchange rate system on exports and imports?
Johnny has allocated $30 toward coffee and tea and feels that coffee and tea are perfect substitutes. Due to differences in caffeine levels, his MRS of tea for coffee equals 2.
Review and evaluate the economic indicators in this weeks Economic Calendar for the US.
Assume the United States is currently in a long-run equilibrium with unemployment at its natural rate of approximately 5.0% and president Trump decides to build a wall between the U.S. and Mexico. Assume the U.S. pays for this wall. Illustrate, using..
Suppose that two consumers care only about the goods that they own. (The goods are private for them.) Starting from a competitive equilibrium allocation, is it possible for both consumers to be made simultaneously better off by trading with each othe..
State the appropriate null and alternative hypotheses to be used to determine if the standard deviation goal is being met.
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