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Suppose the government introduced a ceiling on lawyers' fees. How would the amount of work done by lawyers, the consumer surplus of people who hire lawyers, and the producer surplus of law firms change? Would this fee ceiling result in an efficient and fair use of resources? Why or why not?
a consumer of two goods faces positive prices for both goods and has positive income. her preferences over consumption
A state meat inspector in Iowa has been given the assignment of estimating the mean net weight of packages of ground chuck labeled "3 pounds." Of course, he realizes that the weights cannot be precisely 3 pounds. A sample of 36 packages reveals th..
Explain how the exchange rate acts as an automatic stabilizer in an economy with flexible exchange rates.
Ross Machine Company in Smithville, Tennessee is considering buying a "CNC Machining Center" for its machining department. The cost of the machine is $60,000. A down payment of $20,000 is required by the machine tool builder
Consider an investment project with the following cash flows: n Porject A Project B 0 -$150,000 -$120,000 1 $30,000 $25,000 2 $25,000 $15,000 3 $120,000 $110,000 A) Compute the IRR for each investment
Suppose a particle rolling down (towards the xy-plane) the helix shaped track given by r(t)=(2 cos t, 2 sin t, t) flies off the track when t = pi/4. Determine the point where the particle will hit the xy-plane.
CrystalWater Pty Ltd and ClearWater Pty Ltd are the only producers of spring water in the local market. The market demand for spring water is given by P = 70 - Q1 - Q2. CrystalWater and ClearWater compete by choosing quantities Q1 and Q2
Likewise, market research indicates that you can sell 15 000 tickets for the First Division fixture at R10 each, or 5 000 tickets at R20 each. Which option would you choose? What is the price elasticity of the demand for tickets for this game?
Find a solution of this equation in terms of the infinite history by inverting the appropriate lag polynomial. Prove that this solution is bounded. Find an explicit expression for ∂y/∂wt-j
An engineering student bought a $75 bicycle and agreed to pay for it with a single $85 payment at the end of six months. Assuming semi-annual compounding, what is the annual, effective interest rate
Consider the canonical model with log preferences, log(c1(t)) + β log(c2(t)), and the general neoclassical technology F(K, L) satisfying Assumptions 1 and 2 (see Chapter 2). Show that multiple steady-state equilibria are possible in this economy.
WHAT FUTURE AMOUNT OF MONEY WILL BE ACCUMULATED 10 YEARS FROM NOW BY INVESTING $1000 NOW PLUS $2000 FIVE YEARS FROM NOW AT 6% INTEREST COMPOUNDED SEMI-ANNUALLY
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