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Van Farms INC, is a small grower of watermelons.Van Farms estimates that watermelon output would increase by 1200 per month with an additional 1000 gallons water/month .Alternatively, watermelon output could be increased by 500/month with an additional 2 tons of fertilizer/month. assuming the cost of water is $0.03/gallon and the fertilizer is $25/ton, is Van Farms using an optimal combination of fertilizer and water? why or why not?
Suppose that in response to learning that some sick individuals were denied health insurance, the government mandates that insurance companies must offer insurance to everyone at unregulated rates.
Using above demanded schedule, find out the elasticity of demand for each price change. (Example: when price changes from $5 to $10, quantity demanded changes from 1000 to 800 oz., so the elasticity of demand, by using average values, is 1/3 or 0...
Suppose prices are determined as a simple mark-up over expected wages: p-w^e=a0-a1U Assume further that wages are a simple mark-up over expected prices: w-p^e=B0-B1U Use the equations above to show that when prices are different from price expectat..
To save on gasoline expenses, Edith and Mathew agreed to carpool together for traveling to and from work. Edith preferred to travel on I-20 highway as it was usually the fastest, taking 25 minutes in the absence of traffic delays. Mathew pointed o..
Economists generally agree that high budget deficits today will reduce the growth rate of the economy in the future
Think the following assertion: We all benefit through having physicians available in case we require them. Therefore, the government should subsidize medical education.
Illustrate each of the following events using a demand and supply diagram for bananas.
Impliment the formula to earnings rather than operating income also use a required return for equity of 9 percent.
Assume the demand and supply for milk are described through the following equations: QD = 600 - 100P; QS = -150 + 150P, where P is price in dollars,
Mr. and Mrs. Jones purchase a new car while they are living in New York. A year later, they move to Oklahoma. Shortly after the move, the brakes fail on the car, causing an accident in which Mrs. Jones is injured. The Joneses file a lawsuit in Okl..
Explain how does the distinction among nominal and real interest rates add uncertainty to the effect of monetary policy on the economy.
The Hull Petroleum Corporation and Inverted V are retail gasoline franchises that compete in local market to sell gasoline to customer.
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