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The brass pump of Problem 1.9 would cost $5000 in- stalled. Instead, George could use a stainless steel pump that has been sitting in the maintenance shop for a year. The pump should last 3 more years. The pump cost $15,000, but it was used for 2 years before being put on the shelf. The accountants say the pump is worth $6000. The maintenance supervisor says that it will cost an extra $500 to recon?gure the pump for the new use and that he could sell it used (as is) for $3000. How much would George save or spend by using the stainless steel pump?
analyze the effect of externalities on market outcomes. differentiate among horizontal vertical and conglomerate
1. a consumer always spends 40 of his income on good x and the remainderon good y. the price elasticity of the demand
4. "I'd rather have a 1% pay cut when prices fall by 3% than a 5% pay increase when the rate of inflation is 8%." This is an example of: A. Irrationality B. Rising real wage C. Deflation always being better than inflation
Identify the stocking rate that you would suggest to a risk averse farmer and explain why you would recommend this stocking rate.
How family panning policies would change the steady state in a Solow model. A. Draw the initial diagram. B. Suppose that the family planning policies lowered the fertility rate. Which curve or curves will this shift?
Draw a supply/demand graph of the product. It must be created by you, not lifted off of the internet of copied from another student. It's OK to hand draw and send a photo or scan, or draw using a computer program (Myeconlab has one that is easy to..
Explain the role of incentives in the market and discuss the government’s use of incentives.
What is the least costly way for the firm to produce 80 units?
Consider the utility-maximizing model in a two-good world, where our representative consumer has well-behaved preferences that result in smooth indifference curves that are convex to the origin. Place good one on the horizontal axis. (Assume I=$120 a..
In a two-player game which of the following is a nash equilibrium
The market for gasoline has changed in a couple significant ways over the last few years: new technologies have decreased the costs associated with producing gasoline, and automobiles are becoming more fuel efficient. Describe how these changes af..
What is the equilibrium levels of real output and what is the equilibrium real interest rate
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