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Consider the model in Section 19.3 with different discount rates across countries. Prove that there does not exist a steady-state equilibrium.
Suppose a consumer's income is M= $1,200 per month, all of which he spends on some combination of rent and restaurant meals. If restaurant meals cost $12 each and if the monthly rent for an apartment is $3 per square foot.
Suppose you are hired by your state government to determine the profitability of a lottery offering a grand prize of $10 million paid out in equal annual installments over 20 years. Show how to calculate the cost to the state of paying out such pr..
Amber City borrowed $1,000,000 secured by a 5-year mortgage note. The cash from the note was used to purchase a building for vehicle and equipment maintenance. Show how these two transactions should be recorded in the General Fund and governmental..
How do you find AP, MP, TVC, TFC, TC, AVC, AFC, and ATC if the problem gives you a list of # of people doing the labor, quantity produced, fixed costs, and wage rate for example, wage rate is $100 a day, firm has $200 in fixed costs.
Suppose "miles driven" is expected to fall by 2% and new auto sales to fall by 13% (due to forecast recession). What is the predicted change in the sales quantity of tires If actual tire sales dropped by 18% would this be surprising
Joe Brown's dairy operates in a perfectly competitive marketplace. Joe's machinery costs $500 per day and is the only fixed input. His variable costs are comprised of the wages paid to the few workers he employs at the dairy.
The city has authorized two companies to provide baseball games in two stadiums, and the public considers the games in each stadium to be equivalent.
Assume the graph below represents the market demand for a patented prescription drug together with the long run marginal cost and average cost functions for producing the drug. (note: the diagram assumes that at output levels over 50 million.
What is the Coefficient of Correlation between square footage and listing price? Does your Coefficient of Correlation seem consistent with your answer to #2 above? Why or why not?
If a corporation operates in a highly competitive industry and competes against many other companies. In the last some years, many new companies have entered the industry and firm now earns a return on investment very close to prevailing interest rat..
You are planning to build a new home with approximately 2,000 -2,500 gross square feet of living space on one floor. In addition you are planning an attached two car garage (with storage space ) of approximately 450 gross square feet.
Why is it important for a profit maximizing firm to consider market structure in determining the price and output of its product or service b. How do you determine the profit maximizing level of production in terms of price, marginal revenue and m..
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