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Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8-0.4q. Marginal extraction cost = $2. r = 20%. The available supply is 20 units. Calculate the allocation of outputs across the two periods that maximizes the present value of the net benefits for the use of the resources. Draw your answer on a graph.
q.assume that the economy is in a long run equilibrium where the inflation rate is greater than the optimal rate i as
The steepness (slope) of an indifference curve indicates which of the following?
What are the differences between the Federal Reserve and a National Bank (specifically, with regard to their intervention policies and powers for acting within the economy)?
Identify some ways that nursing homes can signal high quality to consumers. Which of these signals are most apt to be reliable? What are some strategies for reducing adverse selection in insurance markets? What sorts of problems do these solutions ca..
q1. the government is involved in providing many goods and services. for each of the goods or services listed determine
What does the Taylor rule imply that policymakers should do to the fed funds rate under the following scenarios?
In jury selection, one cannot exclude potential jurors on the basis of race or other discriminatory criteria. One question is if this prohibition against discrimination should extend to potential jurors that have physical or mental disabilities. How ..
The New York Times (Nov 30, 1993) reported that 'the inability of OPEC to agree last week to cut production has sent the oil market into turmoil. the lowest price for domestic crude oil since June 1990.
A large bank has assets that include $100 million in vault cash and $1 billion on deposit at the Federal Reserve Bank. Its liabilities include $1 billion ($109) in checkable deposits. What are the excess reserves, if any?
Look at those whose advertising went down by double digits from the prior year. Speculate about what might have caused those advertisers' expenditures to decline.
Discuss the difference between tangible and intangible priorities and why ground rules are important when both parties are amenable to negotiate
A corporation has ten employees, all of whom want a more pleasant work environment. Accordingly, they are considering removing litter from the grounds of plant.
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