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Suppose that the government is deciding how wide to make a public road that services one resident named Bob. Bob’s willingness to pay for each metre of road is described by 20 – 2Q.
a. Graph Bob’s willingness to pay (demand) curve. Suppose that the marginal cost for each meter of road is described by MC=2Q. Find the optimal width of the road.
b. A second resident named Doug moves into a house on the road in question, and Doug’s willingness to pay is described by 10-Q. Graph Doug’s willingness to pay curve. Then derive the collective demand curve and draw it on a graph.
c. Find the new optimal road width.
Illustrate what is the competitive advantage including low cost strategy, cost leadership also focus strategy of HSBC Holdings.
Current, Greece has a debt of roughly 175% of GDP. The new government has announced it wishes to negotiate a write-off, something Eurozone leaders have so far refused. From prior knowledge and this post, I understand that governments may want to stim..
Why is popcorn so expensive at the movies? Argue both that a high price for popcorn is price discrimination and then argue that it is not price discrimination.
You find yourself in a lonely oasis in the desert. The only two things you can produce are either dates or water. In a day you can either gather 100 dates or collect 50 liters of water. And you choose to spend 4 days a week gathering dates and 3 days..
Utilize your general knowledge of equilibrium prices to explain why the previous interest rate is no longer sustainable.
GDP Calculations; Consumption $300 Imports $30, Government purchases 150 exports 80, GNP 700, Gross Private Dom. Invest 100, a. Using the data in the table above, GDP is equal to _______.
sticky prices also income are often cited as an example of market inefficiencies during recession lay off workers yet many of these firms are related to begin hiring even as the economic situation improved.
Describe the long-term trends in inequality in the United States using the available measures. What are possible explanations for these long-term trends.
Determine how much money would be in a savings account that started with a deposit of $2000 in year 1 with each succeeding amount increasing by 10%/yr. Assume a 7 year period and an interest rate of 15%.
There has been extensive discussion of the "wealth effect." The argument goes that inflated stock values were partially responsible for the strong U.S. economy of the 1990's. Explain this linkage in words and then illustrate with an Aggregate Demand/..
A firm is considering whether the following project should be undertaken if its life is 10 years and it has no salvage value. The firm uses an interest rate of 10% to evaluate engineering projects. The Net Revenue below is dollars per year for the li..
In customer theory there are some useful analytic results that can come from studying homothetic utility functions of consumption for each.
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