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New York University is one of the most “liberal” law schools in the country. However, in spite of the political leanings of the faculty and the students, the vast majority of its law graduates enter lucrative large firm law practices, not public interest work. To encourage students to enter public interest careers, the law school is considering two policies – a loan forgiveness program if students go into public interest careers or a scholarship program for people who say they want to go into public interest law (they would have to pay back the scholarship if they do not go in to public interest law). Suppose the two programs could be established in a way that the present value of the benefit to students going into public interest law was the same if the rate at which individuals could borrow money at was 10 percent. Do you think students would prefer one or the other option? Would all students have the same preferences? Why?
Suppose the Demand Curve is given by Q = 100 - .5 P Derive the Price that Maximizes Total Profit if the company produced at a constant marginal cost of $50/unit.
q1. external and internal equilibria are often contradictory goals and the policy-maker is forced to choose between one
A couple operate a pet sitting service on the side. They want to add a daily service of a photo placed online for pet owners who are travelling. The required equipment is expected to cost $636 to purchase and $16 per month to operate. Revenues are ex..
How does subsidy affect consumer surplus, producer surplus, tax revenue and total surplus. Does a subsidy lead to a deadweight loss.
Assuming that all buyers received the credit, estimate the own cost elasticity of demand as well as well as own cost elasticity of supply.
The short run price elasticity of demand for tires is 0.9. If an increase in the price of petroleum used in producing tires causes the marketplace.
Firm manufactures bicycle component upgrade kits. Kits have a short-run average variable cost of $48 and are sold for $66 each. What is breakeven level of daily output for firm.
Westinghouse and General Electric are competing on the newest version of clothes washer and dryer combinations.
If Malcolm Fights, both politicians gets a payoff of 30. If Malcolm opts to Negotiate, the payoffs are 15 to Malcolm and 15 to Tony. What are the Nash equilibria of the game?
George, who owns and runs Tots Poses, expects to encounter an average of eight customers per day, each with a reservation price shown in following table. What are total revenues, average revenues and marginal revenues
.Compute by how much monetary policymakers mllst change the nominal money supply for the expectations of firms and workers to be realized.
Describe the roles of government bodies which conclude the national fiscal policy
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