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The second largest public utility in the nation is the sole provider of electricity in 32 counties of southern Florida. To meet the monthly demand for electricity in these counties, which is given by the inverse demand function P = 1,200 - 4Q, the utility company has set up two electric generating facilities: Q1 kilowatts are produced at facility 1, and Q2 kilowatts are produced at facility 2 (so Q = Q1 + Q2). The costs of producing electricity at each facility are given byC1(Q1) = 8,000 + 6Q12 and C2(Q2) = 6,000 + 3Q22, respectively. Determine the profit-maximizing amounts of electricity to produce at the two facilities, the optimal price, and the utility company's profits.
Explain how does the democratic political system lead politicians to emphasize points outside the production possibility curve.
If you assume that the forward rate is a predictor of the future spot rate, does it suggest that the Dollar should have appreciated or depreciated from 2001 to 2002? (round to nearest integer)
Developing nations are often concerned that their terms of trade might deteriorate as economic growth occurs.
GRAND RAPIDS, Mich. - Kellogg Company on Monday said its earning growth 17.3% in the 2nd quarter on strong firm wide sales growth, beating Wall's Street's expectations.
The United State Congress is currently debating new budget. Most Republicans wish to reduce federal spending. Democrats do not want to decrease federal spending by as much as Republicans do.
Elucidate the dispute resolution options available to Bobbie Sue and Suzy Q and the primary differences between each option.
Determine your interpretation as to whether or not capital gains taxes should be increased or decreased? Should general income taxes be increased or decreased?
Illustrate what would this typical basket have cost in the base year.
What output level does the paint company choose? 2. What is the socially optimal level of output? 3. Describe a possible Coasian solution to the externality problem. 4. What corrective tax could the government set to achieve the socially optimal leve..
Explain why are there significant disparities in the cost of living throughout the US.
Proponents of trade off liberalization argue which freer trade might actually improve the quality of the environment.
Suppose that Carl's budget is $20 and that apples cost $5 per unit and bananas cost $2 per unit. Draw our model of the optimal bundle with Apples on the horizontal axis. (You must show his indifference curves and his budget set.)
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