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1. Theoretically derived ideal gradings of aggregates for maximum density should be the most economical, yet the practice is not followed. Can you explain why?
2. In mix designing, why is it desirable to use a minimum amount of water? For a given slump, how can you reduce the amount of water?
EC 502: Problem Set 6. Using the formula for εts given above, together with the optimal policy formula for xt given above, draw a curve describing the evolution the output gap xt in response to the positive cost-push innovation in period 1. In period..
If the company's effective tax rate was 36%, determine the difference in taxes paid in year 2 if the depreciation method had been straight line instead of MACRS.
Ginger's utility function is U(x, y) = x2y, with associated marginal utility functions MUx = 2xy and MUy = x2. She has income I = 240 and faces prices Px = $8 and Py = $2. a) Determine Ginger's optimal basket given these prices and her income.
Explain this tendency of industrial clusters to break up in terms of the theory of external economies.
Keynes rejected the classical notion of Say's law. He argued that under-spending was very likely. Keynes focused on aggregate demand (total spending) as being the key determinant to the level of macroeconomic activity not aggregate supply which wa..
Calculate the initial values of the variables listed in the first column and fill in column B.
Go Hard has total fixed costs of $2,160 per day. The firm manufactures Go Hard advice kits. The kits have a short-run average variable cost of $48, and all of them can be sold for $66 each. Assuming constant per unit variable costs in the relevant..
If income elasticity of demand of good X is 0.89, what will happen to equilibrium price if there is an increase in income of consumers. Draw a diagram to support your answer.
the exchange rate between US-dollar and the euro is exactly 2 $/euro. At that time, a one-year US treasury bill yield an interest rate of 5%, while a similar German treasury bill yield 3%. Inflation during the year is expected to be 3% in the USA ..
A monopolist faces demand given by: P = 100 - 0.4Qd, and has marginal costs given by MC = 10 + 0.2Q a. draw the demand, marginal revenue and marginal cost curves. Calculate and show how much this firm will sell and what they will charge.
How does growth in the 1970s compare to growth in the later decades? How does growth in the 1960s compare to the later decades? Which decade looks most unusual?
Suppose the demand curve for a monopolist is QD = 500- P, and the marginal revenue function is MR = 500 - 2Q. The monopolist has a constant marginal and average total cost of $50 per unit. A. Find the monopolist's profit - maximizing output and pri..
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