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In a recent conversation a policy maker argued that since DEWA is monopolist, they are charging higher price and lower output is produced. He further mentioned that government should split the entire unit into small pieces so that competition can drive down prices. Do you agree with this statement? Explain your answer in few words. Provide a relevant diagram
q.1. what are the reservation values you calculated for bel vino and star shine? explain briefly justify your
Assume an economy with a coal producer, a steel producer, and some consumers (there is no government). In a given year, the coal producer produces 20 million tons of coal and sells it for 5$ per ton. The coal producer pays $50 million in wages to con..
The wage in the U.S. is $20. Given current employment, the marginal product of the last worker in Mexico is 100, and the marginal product of the last worker in the U.S. is 500.
In a waiting line model situation, arrivals occur around clock at a rate of six per day and service occurs at one very three hours. Assume Poisson and exponential distributions. Illustrate what is Mean Arrival Rate λ
Who benefits from a tariff or quota. Who loses. Illustrate what are positives and negatives of protectionist trade policies on federal government's part. Which policy is best right now.
A contractor must choose between buying or renting a crane for the duration of a 5 year construction project. The contractor uses an MARR of 8%. At the end of the project, the crane can be sold for 21% of its initial cost. The cost to operate and mai..
An analyst needs to adjust the nominal GDP for the years 2000 and 2010 into real terms to conclude his comparison analysis. The nominal GDP in 2000 was $672 billion and $1,690 billion for 2010; the real interest rate was 6.79% in 2000 and 3.71% in 20..
On June 5, 2003, the European Central Bank acted to decrease the short-term interest rate in Europe by half a percentage point, to 2 percent. The bank’s president at the time,Willem Duisenberg, suggested that, in the future, the bank could reduce rat..
Identify your fixed and variable costs at your fast food restaurant, and explain the changes to each of these costs, given the increased demand.
q. we may not have a de lorean that reaches 88 mph or a tardis that can slide through space and time but within the
The money multiplier equals 1/R, where R represents the quantity of reserves in the economy. If the money multiplier is 2 and the Fed buys $50,000 worth of bonds, what happens to the money supply? What does the Fed auction at the Term-Auction ..
Do not try to explain people's tastes, but they do try to explain what happens when tastes change.
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