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Question: Imagine that a pig farm and a high-end restaurant that prioritizes outdoor seating are (for whatever reason) located adjacent to one another. Further imagine that the restaurant cannot operate if the pig farm operates because the smell from the pig farm nauseates diners. Will the restaurant close? Must government intervene to resolve this dilemma? Fully identify and explain the class concept(s) that helps us "make sense" of this problem.
Suppose that the individual demand for a product is given by Q = 1000 - 5P. Marginal revenue is MR = 200 - 0.4Q. There are no fixed costs and so marginal cost, which is constant, is equal to average cost. That is, MC = AC = $20. Calculate the firm's ..
In the nation of Wiknam, people hold $1,000 of currency and $4,000 of demand deposits in the only bank, Wikbank. The reserve–deposit ratio is 0.25. What are the money supply, the monetary base, and the money multiplier? Assume that Wikbank is a simpl..
Clarify what happened to the profit maximizing output rate when input costs were increased.
Some restaurants are open only for breakfast and lunch but are closed for dinner. What economic factor's determine if it is better to close the restaurant for dinner or leave it open for all three meals times. What general costs (Fixed and/ or variab..
Your financial adviser recommends buying a 10-year bond with a face value of $1,000 and an annual coupon of $75. The current interest rate is 8 percent. What might you expect to pay for the bond (aside from brokerage fees)?
Use the following payoff matrix for a simultaneous-move one-shot game to answer the accompanying questions.
Determine the median and the values corresponding to the first and third quartiles in the following data.
What is gestational diabetes Explain what the condition is, how it is diagnosed and how it can be treated.
Nominal GDP for an economy is $10 trillion. Real GDP is $9 trillion. What is the value of the implicit price deflator?
If a tax were to be imposed on one of these items, for which item would the tax be the most efficient.
An example of an exclusive union would be:
In which of the following situations would the Fed conduct contractionary monetary policy?
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