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Suppose that the low-skill job market is perfectly competitive and that the equilibrium wage and monthly output in the market absent government interference are $4.50 per hour and 1,000,000 hours. Assume that the demand and supply elasticity equal one and two. If the federal government mandates a minimum wage of $7.25 per hour, explain what happens to producer, consumer, and total surplus. Is there deadweight loss associated with the minimum wage?
Calculate the NPV of the cash flows expected in 2006-2010 using only the 2005 Cost of Capital Calculate the NPV of the cash flows using the CASH FLOW figures at the bottom of the spreadsheet
Whenever John is singing, the sales revenue from concert tickets is $100,000 higher than if a regular singer is singing. If he doesn't become a singer, he can get a job that pays $50,000 at most. How much will he be paid in equilibrium How much of..
The market for tortillas is perfectly competitive, with market demand for packages of tortillas given by P=1 .-00002Q, with price in dollars per package and Q in thousands of packages. The short-run marginal cost curve for a typical tortilla facto..
Your accountants tell you that it costs $400 to set up an immunization program at a preschool and immunize one child against polio. It will cost $460 to immunize 20 more children.What is the cost per child for these additional 20 children
Suppose that we randomly select a recent graduate of the University of Virginia graduate school of business. This school has a recruiter assessment score of 4.1 and an out- of- state tuition and fees of $ 43,000. Predict the average starting salar..
Nicole's income is $1,000 per month. She spends all of it on shoes (S) and books (B). Shoes cost $50 and books cost $25. Her marginal rate of substitution for shoes with books is MRSSB = 2B/3S.
A market study found that the served by Online Tutors can be divided into two types of students: students needing help with math, who are primarily interested in math tutoring but may be interested in some science tutoring.
Plant A is much more highly automated than plant B, which in turn is more highly automated than plant C. For each type of plant, average variable cost is constant so long as output is less than capacity, which is the maximum output of the plant.
Assume that the marginal cost (supply) of influenza vaccinations is constant at $40. Assume that everyone in society has health insurance that pays 80% of all medical services, including flu shots. Assume first that the flu is not contagious. Defi..
Define inflation. Assume that you live in a simple economy in which only three goods are produced and traded: fish, fruit, and meat. Suppose that on January 1, 2007, fish sold for $2.50 per pound, meat was $3.00 per pound, and fruit was $1.50 per ..
Suppose a cost minimizing firm wihses to change its scale of production and needs to know the combination of labor and capita to employ. If the firs's total cost outlay is $14. Fin the this combination using the information below
If your nominal income rose by 5.30 percent and the price level rose by 4.30 percent in some year, by what percentage would your real income (approximately) increase If your nominal income rose by 2.80 percent and your real income rose by 1.00 perc..
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