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Can you give me at least two examples of how average cost pricing has distorted regulated markets in electricity and natural gas. How does the mispricing affect customer behavior?
In class we built a Production Possibility Frontier (PPF) where each sector exhibits constant returns to scale technology and where sectors use die rent capital-labor ratio. Suppose now that both sectors exhibit increasing returns to scale. Build the..
The process of specialization and exchange allows a producer to become a. proficient in one or a few areas of production b. proficient in all areas of production c. self-sufficient d. independent
Which of the following accurately brings out the distinction between small business and larger firms? A(n) _____ is a precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals. Which of the foll..
10 years ago Jennifer bought an investment property for $105,000. Over the 10 year period inflation has held consistently at 7% annually. If Jennifer expects a 12%/yr real rate of return, what would she sell the property for today?
Compute the regular expenditure multiplier also the net tax multiplier if the level of consumption increases from $80,000 to $92,000 as a result of change in income from $120,000 to $140,000.
Crew Brew of Wisconsin plans to build a microbrewery on a small stream in that state. After sampling water from the stream, Chris Pierson has found that it is contaminated with pulp and paper waste from a local paper mill.
q1. a flat tax plan allows individuals to deduct a standard allowance of 10000 from their wages. assume that the flat
q1. assume the unit cost for pogo sticks is 40 in north pogo as well as 8 in south pogo while the current exchange rate
Suppose that there is no growth in real GDP and inflation is equal to -2% per year. (Negative inflation is the same as deflation.) Measured in ducats, illustrate what will GDP be equal to next year.
Suppose economists observe that an increase in government spending of $10 billion raises the total demand for goods and services by $30 billion. If these economists ignore the possibility of crowding out, they would estimate the marginal propensity t..
Aaron and Barry, living close to the entrance to the Yosemite National Park, sell the same kind of drinking water to tourists. Every day in the morning, Aaron carries some water to the park. Barry, observing how much water Aaron brings to the park, d..
The market for all-leather men's shoes is served by both domestic (U.S.) and foreign (F) producers. The domestic producers have been complaining that foreign producers are dumping shoes onto the U.S. Calculate the price and quantity that would prevai..
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