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Use the following FOC for schooling in the simplified model: f'(s) = r(f(s)+c(s)), in which s is total time in school (e.g., years of school attained), f(s) is the adult wage while working, and c(s) is the direct cost of school (tuition, transportation, uniforms, etc.). For this problem, let f(s) = as+b and c(s) = c, in which a, b, and c are positive constants.
Suppose r(b+c) < a. Show that this implies f'(s) > rc(s). Explain why s* is nevertheless infinite. Additionally, solve for s* and interpret the dependence of s* on r, a, b, and c.
A deposit of $3,000 is made in a savings account that pays 7.5 percent interest compounded annually. How much money will be available to the depositor at the end of 16 years?
Why does the government have a bad reputation of being inefficient? And if it is inefficient in some areas and not others, does that mean they should privatize the inefficient responsibilities?
Illustrate what was the growth rate of the GDP deflator between 2007 and 2008. What was real GDP in 2007 measured in 2000 prices.
A business owner used a revenue function and a cost function to analyze his monthly sales. One month he found that with a sales volume of 600 items he had revenues of $10,200. Another month he had total costs of $4,700 on a sales volume of 400 items...
q. 1. describe michael porters five-force model and indicate why many observers regard his paradigm of industry
The operating and maintenance expenses are expected to be same whether you purchase the truck or lease it. If the minimum acceptable rate of return is 12% per year compounded monthly, should you purchase this lift truck or lease it?
Weigh the risk also benefits of outsourcing internationally by corporate America for the standard working person.
Where one the theoretical Production Possibility Frontier (PPF) do you think the US was on September 10, 2001? What happened thereafter? Support your answer with evidence such as unemployment rates, labor participation rates and information on invest..
as you have worked as a real estate agent for 10 years as well as are earning about 100000 every year with your current
A major defence supplier expects to generate additional revenue from its recently won government contract. The company expects the revenue will be $110 million in the first year and the revenue increasing by $2.5 million each year for the next 4 year..
In the US, realized capital gains are taxed at 15% if they are held for more than a year. Suppose instead that we include realized capital gains (those held for more than a year and less than a year) in income instead so that they are added to an ind..
Using iterated elimination of dominated strategy (IEDS), find the equilibrium of the game below:
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