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An engineer failed to allow for a windstorm during construction of a building. Collapse occurred while a crew was trying to add bracing to the structural frame. No one was injured, but one worker was killed. Compensation to the worker's family for lost income will be made using a 7% interest rate. The worker was 25 and had a salary of $22,000. Assume retirement at age 65 and an annual $1000 salary increase. What is the present value of the family's lost income? Is this a realistic estimate of the value of a human life?
Review and chose a firm of your choice or one provided by your instructor. Is this firm a monopoly? In what ways could it be considered a monopoly? What markets are involved? What antitrust legislation would apply? Is antitrust legislation fair to yo..
Even among professional sport players, the salaries for players in some sports are generally significantly higher than the salary in some other sports. Elucidate how does this make sense using supply and demand in a market in equilibrium.
If the proposed textbook receives a favorable review, explain how should the editor revise the probabilities of the various outcomes to take this information into account.
Assume you plan to invest $10,000 at one of the following interest rates. Order the interest rates in declining order of the amount of interest they would provide in one year
Consider the Solow growth model with constant (positive) population growth (γN > 0) and technological change (γH > 0). Suppose that the aggregate production function is Yt = ztKt^a(HtNt)^1−α. Derive the law of motion for capital per effective worker,..
Which theory of regulation suggests that regulatory outcomes reflect the desire of regulatory agencies to increase their own budgets and power more than they reflect any interests of business or the public?
The short-run total cost function for a firm producing skateboards is TC= 18q^2-9q+72 where q is the number of skateboards per week. (1) What is the fixed cost? What is the variable cost?
Consider the following annual data on approximate cigarette sales and cigarette producer advertising expenditures over the 1986-1990 period: Discussing the direction of the relationship between the two variables and ii) discussing whether or not the ..
Why does the ATC curve always lie above the AVC curve? Why do the two curves move closer together, but never seem to meet each other? What does the law of diminishing returns have to do with the shape of the AVC and ATC curves? Explain why those curv..
Suppose your firm produces electricity by burning coal. Currently it buys central Appalachia 12,500 BTU per ton coal at the market price of $52 per ton.
Explain whether you would rather be a borrower or a lender during a period of unexpected rising inflation.
The price elasticity of demand for mopeds, in absolute value, is 0.5, by what percentage will the quantity of mopeds demanded increase if the prices fall by 10%?
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