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Consider the allocation of a delectable resource over two periods. There are Qbar=4 units of the stock available. The total benefits derived from using the resource are defined as TBt= 20qt- (1/2qt^2) and the total cost of extracting the resource is defined as TCt=5qt
What are the values of q0 and q1 that maximize the net benefits of using the resource if the discount rate is 10%? What if the discount rate is 5%?
Now suppose there are Qbar = 30 units of the stock available. How do the answers to part (a) change? What is your intuition?
What is the shadow price in period zero?
When thousands of products and their prices are at stake, does it make sense that comparative advertising at the store level be permitted? Based on what you read and any further research you choose to do, has Wal-Mart competed fairly with its compara..
We often speak of how price ration goods. What are other rationing measures in clinics in which free care is provided?
Suppose that in addition to repairing your car, you can also spend money advertising. If you repair your car for Hours and spend A dollars advertising, your benefit(the amount you receive when you sell your car) is B(H,A)=220H-H^2+2A. Write down the ..
Suppose that expectation of reducing housing values cause households to decrease their demand for new houses and the financing that accompanies it.
A sudden escalation in the utilization rates and, correspondingly, medical expenditures for treatment of ischemic heart disease (a procedure usually covered by insurance) would immediately. Insurance coverage of which treatment would likely cause the..
The slope of the total product curve measures. The Law of Diminishing Returns to a variable input (such as labor) assumes that. The ratio of total productivity to the total quantity of a variable input being used in production is
A corporation's marginal tax rate is 34 %. An outlay of $35,000 is being considered for a new asset. Estimated annual receipts are $20,000 and annual disbursements are $9,000. The useful life of the asset is 5 years, and it has no salvage value. Assu..
Write a paper about any topic in Demographic Transition in Developing Countries.
Illustrate what is the average labor productivity, in terms of square feet per painter-hour.
Some economists prefer to use the term businessfluctuations rather than business cycles toSome economists prefer to use the term business fluctuations rather than business cycles to discuss the historical growth record in the united states because..
If the resource prices return to original levels, but a new technique is invented that can produce.
You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $500,000 per month, and you have contractual labor obligations of $1 million per month that you can’t get out of. You also ha..
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