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Consider a market where supply and demand are given by QXS = -14 + PX and QXd = 76 - 2PX. Suppose the government imposes a price floor of $35, and agrees to purchase and discard any and all units consumers do not buy at the floor price of $35 per unit.
a. Determine the cost to the government of buying firms' unsold units.
$
b. Compute the lost social welfare (deadweight loss) that stems from the $35 price floor.
Consider a series of end-of-period CFs spanning 2046-2053, which increase at a 1% rate each period. The amount of the first CF in the series is $92. The interest rate is 3%. What is the equivalent value of this series at the beginning of 2046?
A company spent $172,000 to upgrade some machines. What is the economic service life of the investment?
Externalities. Consider the example of the perfectly competitive steel firm from class. The firm takes the market price p = $35 (per unit of steel) as given and chooses quantity q (units of steel) to maximize its profits. The firm has increasing (pri..
Night Shade Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $9.64 per unit, and the variable labor cost is $8.63 per unit.
Suppose production function for burritos at Chipotle is Q =4k^1/2 L^1/2.They currently own 4 units of capital and are not able to change this during the short run. The rental rate of capital is $10 and the wage rate is $20. What is Chipotle's short r..
Convert the production function into its normal form. Illustrate what is the MRTS, if price of labour is $120 and the price of capital is $200?
Why do you believe legislation is passed to mandate minimum wages, when evidence, such as cited in Macpherson's article exists?
qq.here is my question i need help with monopoly in the market for news. the cnn is considering offering articles to
Suppose Firm X is a monopolist and is receiving positive economic profits. Illustrate what prevents other firms from directly competing away the profits.
Your first paragraph should discuss what the part of the model of the market gave you the biggest fits (but it cannot be "everything"). In this paragraph, include specifics about what it is that you don't understand as well as you would like. 2. In t..
What is the appropriate cost of capital to evaluate the? business?
An industry consists of three firms with sales of $310,000, $725,000, and $405,000. Calculate the Herfindahl-Hirschman index (HHI). Calculate the four-firm concentration ratio (C4).
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