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Although inflation has been steady at a 2.5% average rate, economists now see trouble on the horizon due to the increases in crude oil prices over the next eight years. The leading economists in the oil industry expect oil prices to inflate; at first 3 years 4% annually, fourth year5%, fifth year6%, sixth 8%, seventh and eighth year 10%. You own a fuel oil company, and you need to revise your eight-year budget to include these expected increases in oil prices. Compute the geometric mean percentage inflation rate f for the eight-year period to two decimal places accuracy.
q.a computer manufacturer developed the following demand curve.q - 700p 80i - 500s 0.01awhere p is the price of a
Show the graphical implications of agricultural production increasing at a rate that is faster than population increases during the same time period. Explain the outcomes.
If the labor supply curve is very elastic, a tax on labor:
Assume that the long-run aggregate supply curve is vertical at Y = 3,000 while the short-run aggregate supply curve is horizontal at P = 1.0 (P = 1.0 is the SRAS Curve, in other words). The aggregate demand curve is Y = 3(M/P) and M = 1,000. If the e..
A professor owned a home next door to a very dilapidated, neglected home. John Cataldo purchased the home next door and made a contract with Wizard Home Improvements for a complete renovation of the property. Do you think the professor will be succes..
There are three players, labeled 1,2 and 3. At the start of the game, players 1 and 2 simultaneously choose between playing “A” and “B”. If they both choose “A” then the game ends and the payoffs are (1, 0, 0) If player 3 guesses correctly, then he a..
Two similar surgeries, breast reconstruction and breast augmentation, have different prices. Breast augmentation is cosmetic surgery not covered by health insurance. Patients who want the surgery must pay for it themselves. Breast reconstruction foll..
Alice and Barbara are playing a one-stage guessing game. Each must choose a number between 1 and 8 (inclusive). Alice’s target is to match Barbara’s number. Barbara’s target is to name twice Alice’s number. Each receives $10 minus a dollar penalty th..
The initial offering price was $34.40 per share, and the stock rose to $41 per share in the first few minutes of trading. Bostitch paid $905,000 in legal and other direct cost and $250,000 in indirect costs. What was the flotation cost as a perce..
A firm is currently producing 50 units of output. At this level of output produced, its average fixed cost is 90 (AFC=90) and average variable cost is 140 (AVC=140). What is the firm's total cost of producing 50 units of output? If this firm increase..
Over the past decade medical costs have increased more rapidly than other prices. In order to illustrate how rising medical costs have affected consumer alternatives, let X represent the quantity of medical services, and let Y represent the quantity ..
Draw the appropriate graph assuming that the economy is operating above full employment. Assuming the aggregate demand excess is $1328B and MPC is .87, calculate the amount of desired fiscal restraint. Which type of government intervention (from scen..
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