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There are 10 households in Lake Wobegon, Minnesota, each with a demand for electricity of Q = 50 - P. Lake Wobegon Electric's (LWE) cost of producing electricity isTC = 500 + Q.a. If the regulators of LWE want to make sure that there is no deadweight loss in this market, what price will they force LWE to charge? What will output be in that case? Calculate consumer surplus and LWE's profit with that price.
J&J Cattle has purchased a quarter section of land for $160,000. They make a down payment of $20,000, and the remainder of the purchase price ($140,000) is financed at 12 percent compounded quarterly with quarterly payments over 2 years.
the equation of the supply curve is Ps=1+0.1*Qs and the equation for the demand curve is Pd=6-0.15*Qd. This results in an equilibrium price (Pe) of 3. This figure shows a regulated price (Pr) of 2, which results in the welfare loss triangle b + d,..
Suppose that disposable income consumption Andy saving in some country are$200 billion, $150 billion and $50 billion respectively, next assume that disposable income increase by $20 billion, consumption rises by $18 billion and saving goes up by $..
Suppose a monopolist faces the following demand curve, variable cost function, and Suppose a monopolist faces the following demand curve: fixed costs:QD =10-1/2p VC=8Q+Q^2 F=8 a. Find the monopolist's revenue, marginal revenue, and marginal cost func..
This question considers a closed economy Keynesian model that is augmented to include transfers payments to consumers (Tr = Transfers) that increase consumers' disposable incomes and lower government savings. a) Suppose you had the following c..
In what kind of market structure does the firm sell its output How can you tell b. In what kind of market structure does the firm rent robots? How can you tell c. Calculate the marginal product and the value of the marginal product for each additiona..
A spike in the unemployment rate - the biggest in more than two decades - raised new concerns Friday that a weak labor outlook, high oil prices and continuing woes in the housing and credit markets are leading the U.S. economy into a painful reces..
(1) Estimate the IRR for each project shown below to within X.X%. (2) Which ones should be done if the capital budget is limited to $60,000 (3) What is the minimum attractive rate of return (MARR) (4) What is the opportunity cost
Assume a normal random variable x, with mean 100 and standard deviation 20. a. Find the probability that a randomly chosen value of x is less than 95. b. Find the probability that a randomly chosen value of x is between 60 and 100. c. Find the 95th p..
Consider a monopolistically competitive market with N firms. Each firm's business opportunities are described by the following equations: Demand: Q=100/N-P Marginal Revenue: MR=100/N-2Q Total cost: TC=50+Q(squared) Marginal Cost: MC=2Q
Seth could consume $120 next year if he saved all his current earnings. He expects to earn nothing next year. The intertemporal budget constraint for Seth is given by the equation C2 = 120 - 1.2C1 where C1 = possible consumption in year 1 and C2 =..
There is a big gap in the earnings of married women and married men, even if individuals of both sex have the same level of education.
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