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In 2002, Los Angeles imposed a ban on new billboards, which was upheld by the courts in 2009. Owners of existing billboards did not oppose the ban. Why? What are the implications of the ban for producer surplus, consumer surplus, and welfare? Who are the producers and consumers in your analysis? How else does the ban affect welfare in Los Angeles?
At the end of the 8-year planning horizon, the mixer will have a salvage value of $5,000. If the mixer is replaced, a new mixer will require an initial investment of $375,000. At the end of the 8-year plaaning horixon, it will have a salvage value..
What happens to your answers in b.), c.), and d.) if the tax rate decreased to 8% What was the original expenditure multiplier in this country What is the multiplier after the change in the tax regime
A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $50,000; maintenance costs that start at $5,000 at end-of-year one and increase by $1,000 for each of the next four years, and then..
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..
The government of Micronia finances its purchases of goods and services with what type of revenue?
Can you think of any possible explanations for this puzzle?
Consider a club where the utility function (incorporating the charge) of a member is U = a + bn -cn2. Find the optimal membership of the club. What is the membership level that maximizes the total utility of the club? Contrast the two levels and e..
Over the next three years, a firm is expected to earn economic profits of $120,000 in the first year, $140,000 in the second year, and $100,000 in the third year. After the end of the third year, the firm will go out of business.
If Max receives an unemployment check, would we include that transfer payment from the government in this year's GDP? Why or why not?
You are the manager of a pizza parlor that produces at a marginal cost of $6 per pizza. The parlor is a local monopoly near campus (there are no other restaurants or food stores within 50 miles). During the day, only students eat at your restauran..
The payoff to student i is 10 - xi if she gets an A and 8 - xi if she gets a B, i = 1, 2. a) Derive the strategies that survive the iterative deletion of strictly dominated strategies.
Project will be done from an external customers' perspective. Using information available in the public domain, such as books, articles, blogs, company websites, etc.; and working in teams; students will analyze a hospitality company.
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