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Suppose that there are 100 consumers in the economy with identical preferences over good x and y described by the following utility function: U(x, y) = x ^(4/5) y^(1/5). Each consumer has an income of 500. The cost of production x2 of good x is described by the following cost function C(x) = 400 +800.
Find the long run equilibrium price and quantity. How many firms would operate on the market in the long run?
Suppose now that the government decides to impose 10% income tax on the consumer in order to raise revenue. Find the short run effect of this policy on the equilibrium price and quantity.
What will be the equilibrium price and quantity in the long run after this policy is implemented. How many firms will operate on the market?
Coach Industries Inc. is a leading manufacturer of recreational vehicle products. Its products include travel trailers, fifth – wheel trailers (towed behind pick – up trucks), and van campers as well as parts and accessories. The inverse demand funct..
Graham field health products make hospital beds and wheelchairs from component parts and materials it buys. it sells products to hospitals nursing homes and retailers of healthcare products. graham field health products operates in what kind of marke..
Develop a strategy for the client to convert passive income into active income deferring immediate U.S. taxation until repatriated home based on your research. Provide support for your recommendation.
Discuss the differences between, and the relationship among, the following levels of analysis: organizational analysis, operational analysis.
Read the following scenario. The dilemma known as the "tragedy of the commons" was first described in an influential article written by Garrett Hardin and published initially in the journal Science in 1968.
You operate your own small building company and have decided to bid on a government contract to build a pedestrian walkway in a national park during the coming winter. The walkway is to be of standard government design and should involve no unexpecte..
A $200,000 bond having a bond rate of 7% payable annually is purchased for $188,000 and kept for 5 years, at which time it is sold. How much should it sell for in order to yield a 9% effective annual return on the investment?
The US auto industry is characterized by a high degree of unionization. What would happen to unemployment in the US auto industry if the firms in the US auto industry were no longer unionized?
Demand for fictitious good is Q=1200 - 2p. Suppose supply is Q= -600 + 2p. What price will sellers receive after the tax is levied? What price will consumers pay after the tax is levied? What percent will be paid by the suppliers?
Using a payoff matrix to determine the equilibrium outcome Suppose there are only two firms that sell smart phones: Flashfone and Pictech. The game between Flashfone and Pictech is not an example of the prisoners' dilemma.
Compare murder rates with and without death penalty. Cross-section of states: is murder rate higher on average in states without executions.
Disneyland has two possibilities for pricing rides at its theme parks: (1) Set MR = MC for each ride and charge the maximum price consumers will bear. (2) Charge an admission fee to the theme park but allow unlimited rides for free. Using graphs, sho..
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