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Sarah’s friends are trying to convince her to leave her summer job one month early, from which she earns $1200 per month, to vacation in Costa Rica. If she goes there, her out-of-pocket expenses would be $2400. What is Sarah’s marginal opportunity cost of going to Costa Rica? If the marginal benefit she gets from the vacation is equivalent to $3500, should she go? Explain.
If the resource prices faced by a firm rise, the result is a(n) The law of supply says that
Illustrate which of the following tax systems could NOT be structured to satisfy conditions of vertical equity.
How low does the market price have to be for the firm to take a loss in the short-run? How low does the market price have to be for the firm to be better off shutting down in the short-run?
What probability of discovery would make the driller indifferent between drilling and not drilling and what is the expected value of perfect information on reserves?
Under dividend-discount model stock prices: The difference in the price of a zero coupon bond and a coupon bond with the same face value and maturity are simply: To reduce overall portfolio risk through diversification,
By how much will the quantity of Federal funds have to change for the equilibrium to occur at the new target rate?
Explain why is the supply of physicians a major cause of concern. What is the quintity of aprtments demaneded, and what is the quanitity of apartments supplied.
Illustrate what was the growth rate of the GDP deflator between 1999 and 2000. Elucidate what was real GDP in 1999 measured in 1996 prices.
Joy Land Toys, a toy manufacturer, is experiencing quality problems on its assembly line. How many inspectors should the firm hire?
The marketplace is highly competitive, with boxes currently selling for $100 every thousand. Conigan's total and marginal cost curves.
One has yearly income $10000, the other has yearly income $90000. Illustrate what is the Gini coefficient for this society.
Explain what would happen to equilibrium price and quantity in the market for Pepsi if the following occurred (be sure to indicate WHY it happens as well)
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