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Suppose you are part of a research team evaluating a proposal to clean up a hazardous waste site. You are in charge of assessing the incremental benefits. Which method would you choose to derive the estimation? Explain briefly why?
Suppose the marginal benefit of writing a contract is $100, independent of its length. Find the optimal contract length when the marginal cost of writing a contract of length L is: a. MC(L) = 30 + 4L. b. MC(L) = 40 + 5L.
US Output: 100 units Labor: 20 workers Wages: $3 Exports:$90 UK Output: 50 units Labor: 20 workers Wages:$2 Exports: $45 1.) Compare the relative productivity with the wage ratio 2.) Then calculate the ratio of the two exports.
Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a packet of cigarettes currently costs $8 and the government wants to reduce smoking by 20%, by how much should it increase the price
Consider the following demand equations for two differentiated products produced by independent firms.For simplicity assume that costs are zero for both firms. Price reaction functions for the two firms can be derived as
Suppose that the price of salt rises from 15 cents to 17 cents a kilogram. The quantity demanded decreases from 525 kilograms to 475 kilograms per month, and the quantity supplied increases from 525 kilograms to 600 kilograms per month.
Suppose market demand is P = 130 - Q. a) If two firms compete in this market with marginal cost c = 10, find the Cournot equilibrium output and profit per firm. b) Find the monopoly output and profit if there is only one firm with marginal cost c = 1..
Now.suppose the monopolist has a total cost curve given by TC+16+4Q2(fixed costs are at original level but variable costs changed). Find the monopolist's profit-maximizing quantity and price.How much economic profit does the monopolist earn d)Inte..
in a population y100 and y43. use the central limit theorem to answer the following questionsa. in a random sample of
How much would you need to invest at 6% interest compounded quarterly on January 1, 2014 in order to accumulate $10,000 by December 31, 2016 2-Given cash flows for an investment of $5,800 at time "0", determine the rate of return to the accuracy of ..
d. explain why the production possibility frontier of part c is concave. e. sketch the realtive price of food as a function of its output in part c. f. if consumers insist on trading four units of food for five units of cloth, what is the relative pr..
The total operating revenues of a public transportation authority are $100 million while its total operating costs are $120 million. The price of a ride is $1 and the price elasticity of demand for public transportation has been estimated to be -0..
There are 300 purely competetive farms in the local dairy market. Of the 300 dairy farms, 298 have a cost structure that generates profits of $24 for every $300 invested. What is their percentage rate of return
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