Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Islandia is a completely isolated island that has a fixed stock of 100,000 tons of coal. Islandia will survive for two periods. Consumers in Islandia having a declining marginal benefit of coal consumption in each period. The curve is constant in real terms over time. Note: No numerical answers
(a) Assume the real interest rate in Islandia is 0%. Draw a diagram illustrating the efficient allocation of Islandia's coal stock across the two periods. Briefly explain your diagram
(b) Now assume the interest rate in Islandia is 5%. In your diagram, illustrate how the efficient allocation of Islandia's coal stock will change from your answer in (a). Explain the difference.
(c) Suppose that the stock of coal in Islandia is controlled by 10,000 individual owners, each of whom owns 10 tons of coal. Coal is purchased by a large number of individual consumers. The marginal cost of extracting and transporting coal is constant. All owners will live for both periods and there are no government regulations governing the sale of coal. How will Islandia's coal stock be allocated between the two periods? Why? Explain with reference to the incentives facing the individuals in the market. Hint: what type of market does this indicate?
Suppose there are two types of shirts available to Carl: red shirts and black shirts Carl is always willing to exchange three black shirts for one red shirt. What type of preferences is mike exhibiting? Are Carl's preferences convex, strictly convex,..
How much Medicare Tax did she pay? What is her marginal tax rateon her federal personal income tax? Details are related to the U.S.
Monopolies can sometimes find themselves in difficult financial situations that lead to losses. Suppose Mr. Burns Power Company has a monopoly for providing electricity in Springfield. His costs of upkeep are so high that he is persistently losing mo..
Suppose you discover that average fixed costs are $2 and average variable costs are $7. Indicate what the firm should do.
Illustrate what are the effects of awards paid to heirs of workers judged to have been worked to death in Japan on wages
Name at least two legislations to prevent monopolization of businesses. Do you believe these legislations have been helpful? Discuss.
In the market for tacos, explain the impact on the demand curve, supply curve, or both. If the market started in equilibrium, determine if the new market equilibrium price and quantity are above, below, or indeterminate with respect to the starting e..
what is the short run equilibrium level of output in this economy.
Assume that the market for wheat is perfect competitive, with demand curve P = 5000 ? 0.01QD and a supply curve P = 1+0.1QS. Each identical wheat producer has a total cost curve given by TC = 1+Q+Q2, which results in marginal cost of M C = 1 + 2Q..
______Job rotation attempts to reduce the boredom created by specialization of tasks by
Besides raising taxes and issuing debt, the U.S. government (Treasury Department) can also secure funds by borrowing directly from the FED. What is the potential danger of this route? What are the implications for investors and for public policy of e..
You purchase a residential home in July 10th 2013 that you are going to use as a rental property. You paid $250,000 and the land was valued at $50,000. What is your allowable TAX depreciation for 2013. You purchase a dump truck for $75,000 that you e..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd