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Covid-19 has reduced the fraction of people who commute and made more people comfortable with communication technologies such as Zoom and Teams. With more companies shifting their employees to work from home more often, this reduction can be expected to persist even if there is no change in the number of jobs in the city. Fewer commuters on the road reduces the cost of commuting for the people who do commute. Suppose that the shift in the cost of commuting is proportional to percentage reduction in the fraction: e.g., if there are 25 percent fewer commuters then the cost of commuting drops by 25 percent. Show how this change in commuting would affect on the optimal population of a city the equilibrium population of a big city.
Assuming that LRR =25%, the Fed decided to apply a Monetary Expansion Policy using the Discount Rate Policy in the amount of $145,000,000 of Borrowed Reserves. Explain in words and numbers what does this monetary policy mean. that is what does this s..
If 50 units of medical services are used, what will the price be for the insured and uninsured?
The cost function of a firm is TC = 50 + 4 Q + 2 Q^2. Find the following: The fixed cost (TFC) and the variable cost (TVC) functions The average total cost (ATC), the average variable cost (AVC), and the marginal cost functions (SMC) Using the AVC fu..
What extent do you agree or disagree that profits should be used as the measure of monopoly power?
Draw a graph of the supply of and demand for the Canadian dollar (C$) by the U.S. market. Diagram the effect of each of the following on the exchange rate; state whether the effect is long, medium, or short run.
Suppose there are two plants that are emitting sulphur dioxide into the air and polluting the environment. One plant has a higher marginal benefit curve than the other. Draw and label a graph illustrating the impact of imposing a uniform environmenta..
What are some of the ethical challenges for businesses in the 21st century arising out of the advancements in information technology and increased emphasis on globalization, and how are these challenges likely to impact the approaches businesses t..
If you have been offered $137,000 for a job in Los Angeles and $117,000 for a similar job in Dallas, elucidate which job affords you the highest purchasing power of the bundle of goods in the price index.
When a merger is in the works or potentially in the works, the SEC makes it mandatory NOT to disclose any information. If information is leaked out, especially to the investors, the purchase of stock prices will be altered and as a result, there will..
A plywood firm uses three inputs – labor, lumber, and saws. Although it van vary its labor each week, it must order its lumber six months in advance, and it would take a year for the firm to sell its saws or acquire new saws. What time periods compri..
What are the pros and cons for local company (Canadian) having a workforce located in another country?
If the house can be sold for $245,000 at the end of 10 years, how much could you afford to pay for it now, if you considered 9% to be a suitable interest rate?
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