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Question: (a) Find the optimal level of health demanded by a person that faces an annual interest rate of 0.05, a health depreciation rate of 0.15 per year, a health capital function equal to H= 2/(A-h), where A is the number of days in a year and h is the number of healthy days a person has in each year. The person earns $10 per hour and faces a total marginal cost of health investment of $20.
(b) How would your answer change if the person acquires a chronic disease that increases his health depreciation rate to 0.40 annually? Explain your answer.
A firm that sells e-books – books in digital form downloadable from the Internet – sells all e-books relating to do-it-yourself topics home plumbing, gardening, and so on at the same price.
the 2010 deep water horizon oil spill in the gulf of mexico caused a huge increase in the number of workers hired to
Explain in details which policy you would recommend, why, and how you would recommend implementing it. What are the advantages of implementing the policy in the way that you have suggested?
in a perfectly competitive industry every firm has identical cost structure. the short-run total cost curve of an
in the middle of the decade , the party was over, and coffee wholesale prices started increasing because of some shortages caused by weather and the rising overall market prices again. Where is the new equilibrium price
question consider that a country can produce just two things goods and services. suppose that over a given period it
Equimarginal principle requires that marginal costs be equated across the two polluters for emissions reduction costs to be minimized.
The prisoners' dilemma game offers insights into the incentives to cheat of agents who will not be placed in the same situation again, such as two criminals.
If unions bargain with the firms in Profunctia and set a wage rate equal to $14, what will be the level of employment, the size of the labor force, and the unemployment rate?
Say that technology is relatively labor intensive if it uses more labor to produce the same amount of output than the other technology. Which technology A or B is labor intensive?
Suppose you are in charge of the central bank. What monetary policy action would you take and why? Using the short-run model.
A dramatic price increase in gasoline will have what effect on the equilibrium in the automobile market?
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