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In the early 1980s, planners were examining alternate sites for a new London airport. The economic analysis included the value of structures that would need to be removed from various airport sites. At one potential site, the twelfth-century Norman church of St. Michaels, in the village of Stewkley, would have had to be demolished. The planners used the value of the fire insurance policy on the church-a few thousand pounds sterling-as the church's value. An outraged antiquarian wrote to the London Times that an equally plausible computation would be to assume that the original cost of the church (estimated at 100 pounds sterling) be increased at the rate of 10% per year for 800 years. Based on his proposal, what would be the future worth of St. Michaels? (Note: There was great public objection to tearing down the church, and it was spared.)
Suppose the monthly demand for soda by a consumer is given by Q=10 - 8P . A/ If the price of soda is $1 per can, how many sodas will the consumer purchase in a typical month? B/ what is the elesticity of demand for soda?
How could the formation of an economic integration unit among several countries actually result in the countries trading to a greater extent in absolute terms with the outside world than before the union was formed? What factors would you consider in..
Suppose Chen has demand Q = 40 – 2P for streetlights and Abby has the demand Q = 10 – (1/2)P for streetlights. The cost of building each streetlight is $19. How many streetlights are socially optimal? How many streetlights would be privately purchase..
_____ is NOT a characteristic appropriate for a yield management strategy.
Assume that the demand for a product X is heavily influenced by the price of another product Y (Py), and the income of consumers (I). The cross-price elasticity of X with respect to Y is exy = 1.25, and the income elasticity is eI = 2. Suppose now Py..
Illustrate what are the values of the tax-adjusted utilize cost of capital, the desired future capital stock also the desired level of investment
In the short? run, a firm in monopolistic competition? ______.
In addition to the previous question, assume 2 probability of risk lines pertaining to two different individuals. Justise' probability of risk line is higher than Hasan's probability of risk line. What can you conclude? If the medical quantity demand..
To maximize? profit, the firm chooses the quantity of output that generates the largest:
Suppose that the income tax in a certain nation is computed as a flat rate of 5 percent, but no tax is levied above $50,000 in taxable income.
Assume that gross national debt initially is equal to $3trillion and the federal government then runs a deficit of$300 billion. What is the new level of gross national debt? If 100 percent of the deficit is financed by the sale of securities to feder..
We have learned that under the perfect competitive market, consumer surplus and producer surplus are maximized. Therefore, market is the most efficient. Research and give an example of an incomplete market, discuss why it is inefficient, and illustra..
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