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1. Explain why a hotel manager should understand the theory of peak-load pricing.
2. In markets for electricity, it is now believed that generation is an activity that should be deregulated and governed by competition. In many cases the price of electricity is determined through a power pool. The power pool operator takes bids for supply and dispatches generation-lowest bidders first-until supply equals demand. The bid of the marginal supplier determines the pool price. Suppose that electricity generation has constant returns to scale, that capacity costs are sunk, and that output in the short-run is limited by capacity. Explain using the theory of peak-load pricing why price ceilings on the pool price are not efficient. How does your analysis change if there are small economies of scale?
First, what does GDP measure? Even if we prefect the measure by correcting for price increase
What is the purpose of the policy Why is the policy necessary The welfare of consumers, producers, and society (the winners and losers) before and after the policy The distribution of costs and benefits Does government intervention improve the sit..
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Find Marens consumption in the two periods ( as a function of m1,m2 and r)3) If the interest rises, how will Maren chanhe her consumption in each of the two periodes
what are these prices? b) How much output is sold at these prices and what is the profit in each market? c) Based on your answer in part a, justify why would the firm charge same or different prices.
Assume that a country’s real growth is 2 percent per year, while its real deficit is rising 5 percent a year. Can the country continue to afford such deficits indefinitely? What problems might it face in the future?
discuss the following situation a from the strictly legal viewpoint b from a moral and ethical viewpoint and c from the
Due to the lack of profits, many growers have stopped production and the output of coffee beans has fallen from 400 tons per year to 250 tons per year.
five critically discuss of five way in which the human or environmental problm impact on the community about food production.
The firms and workers in Alpha form expectations adaptively. The firms and workers in Omega form expectations rationally. Their otherwise identical economies are initially in equilibrium at the natural level of output with 10 percent inflation.
when advanta corp. decided that it wished to begin charging a fee to holders of its credit cards for periods during
Suppose that the price level rises by 5% in a year. You have $1000 in a savings account at 3% interest rate. What is the real rate of return from the account?
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