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Many policymakers are concerned that Americans do not save enough. Using the Solow growth model, with no technological change and no population growth, Explain why a higher savings rate will not necessarily generate more consumption per worker?
Rick sells hamburgers, facing no competition the demand for his burgers is: Q=1000-2P, where Q is the quantity of burgers sold per week and P is the price of a given hamburger. Suppose Rick’s monthly cost is given by: TC= 1000+100Q. What is the value..
What are the three most important attributes of successful organizations? Why? Is it more likely for an organization to display these attributes (to be successful) in an oligopoly than in monopolistic competition? Why or why not?
Suppose that between 2003 and 2007, one group of individuals (Group 1) received job training while another otherwise similar group (Group 2) did not. Suppose that the average earnings of the first group went from $40,000 per year to $55,000 per year,..
Labor in Boom and Recession. Assume there is a labor force of 16 workers at an isolated site. During boom the firm faces a demand curve of P=100-Q. During recession it faces a curve of 80-2Q. Like likelihoods of Boom and Recession are 60% and 40%, re..
[Moral Hazard] Consider three investment projects A, B and C. Project A costs $10 and the return is $20. Project B costs $10 and the return is $40 with probability 0.4 and $-10 otherwise. Project C costs $20 and the return is $60 with probability 0.3..
The NHFishercats are debating whether to build a new restroom in the leftfield area near the patio adjoining the bar/restaurant located there
Compute the certainty equivalent of his bet. Calculate the Arrow-Pratt measure of absolute and relative risk aversion.
A medical device company has a monopoly on a certain class of cardiac implants. Demand for the implants is given by P=28000-5Q and marginal revenue is given by MR=28000-10Q. The total fixed costs for the implants division is 50000 and the marginal co..
Custom Made Clothing, a small clothing manufacturer, can use either a capital-intensive or labor-intensive technology to produce a product. If the price of capital increases and the price of labor remains constant, this firm most likely would...
Using the Lagrangean multiplier approach calculate the optimal (i.e., service maximizing) combination of medical and social staff. Determine the optimal amount of service provided by BF.
Economists generally dislike the restriction of trade because it:
Illustrate what is the marginal revenue from selling another book for the author. Explain how does it compare to the marginal revenue
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