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Q. Here is the question I need help on: Suppose that in New Crankshaft, Pennsylvania, the quality distribution of the 4, 000 used cars on the market is such that the number of used cars of value less than V is V/2. Original owners must sell their used cars. Original owners know what their cars are worth, but buyers can't determine a cars quality until they buy it. An owner can both take his car to an appraiser and pay the appraiser $100 to appraise the car (accurately and credibly) or sell the car unapprised. In equilibrium, car owners will have their cars appraised if and only if the cars value is at least?
Contrast two or three key economic factors for this country with the U.S. economy, and comment.
Hardwood Cutters presents seasoned as well split fireplace logs to consumers in Toledo, Ohio. The low-cost provider company is of firewood in market with fixed costs.
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A competitive firm that is profit maximizing pays a wage. The firm has started marketing its new product.
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The quantity demanded of the resource in each year is given by the equation Qt = 10 - Pt . The marginal cost of extraction is zero.
After reviewing efforts to reduce the Deficit, discuss the actions in use by Congress since 1985 to reduce the budget deficits.
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School tries to discourage Twinkie consumption by raising the price to $.40, by how much will Matt's mother have to increase his lunch allowance to provide him.
Explain why a perfectly competitive firm may continue to operate in the short-run even with a loss of profits.
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