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Two firms share a building. Guards patrolling the building protect both the stores. The jewelrystore's demand curve for guards is strictly greater at all prices than that of the hat store. Themarginal cost of a guard is $10 per hour.
Use a diagram to show the equilibrium and comparethat to the socially optimal equilibrium.
Now suppose that the owner of the building willprovide a $s per hour subsidy per guard.
Show in your graph the s that leads to the sociallyoptimal outcome for the two stores.
How the economy works and why the idea of limited resources is such a major concern in today's economy
According to a study by the U.S. Centers for Disease Control and Prevention, the price elasticity of demand for cigarettes is -0.25. Americans purchase about 360 billion cigarettes each year. If the federal tax on cigarettes were increased enough..
When we construct the cubic total variable cost, TVC = aQ + bQ2 + cQ3, in order to confirm the theoretical properties, the parameters should satisfy
n firms choose prices simultaneously in each period. nbspthe discount factor is delta per period. nbspsuppose firms try
Are they likely to make economic profits initially? Can they continue to make economic profits in the long term? Why or why not? Discuss. What advice would you give to Alba and Gavigan to help them make more profit in the long term?
Calculate the price elasticity of demand for Newton's Donuts and describe what it means. Describe your answer and show your calculations.
A construction firm can achieve a $15000 cost savings in Year 1 and increasing by 10% each year for the next 5 year by upgrading some equipment.
1. True, False, Explain (Say whether each statement answer is true or false, then explain why. Your grade depends on the quality of your explanation). a. Suppose you estimate the population regression model
What is the equilibrium price and quantity?
Should constituents have input into the FASB decisions, or should the FASE neutrally and independently set standards?
How much output should the firm produce in the short-run and what price should the firm charge in the short-run - what are the firm's short-run profits
Suppose there are external costs associated with the production of cement. This means that government can best promote efficiency in the cement market by:
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