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Assume an economy lasts for 2 periods. In period 1, only 1 agent is born, this agent lives for 2 periods. In period 2, two agents (who only live in period 2) are born. The consumer born in period 1 is willing to pay a max price of $100 per period of TV usage. Each consumer born in period 2 is willing to pay a max of $50 for using a TV in period 2. Suppose that there is only 1 firm producing TVs which are durable goods and which have 0 marginal production costs. Calculate the prices the selling monopoly charges for TV sets in periods 1 and 2.
Do sibs have the expected effect. Explain. Holding medic and feduc fixed, by how much do sibs have to increase to reduce predicted years of education by one year.
Some economists argue that only unanticipated increases in the money supply can affect real GDP.
Idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
Describe how a developing - emerging economy can benefit from trade with a wealthy country even if it has no absolute advantages.
Given a binomial random variable with n = 60 and p = 0.36 find the probability of obtaining between 25 and 35 successes inclusive, to three decimal places.
PbP Company have pay $10,000 to disassemble and ship the furnace to the new owner. What is the net cash flow after tax as it will result from selling this furnace in the year 2012.
Open a pizza restaurant and is considering either selling the bonds and using the 100,000 to start his restaurant or borrowing the 100,000 from a bank which would charge him an annual interest rate of 7 percent.
A price index for nonresidential construction was 14 in 1949, 92 in 1987, and 114.5 in 2000. According to these numbers, what did the hospital cost approximately.
For every firm in group B , long-run ATC curve is U-shaped and intersects the long-run MC curve when ATC = 10 and output is 6.
Draw a graph of the market for chewing gum. What are the equilibrium price and quantity? Mark the equilibrium price and quantity in the graph.
Substantive responses use theory, research, and experience or examples to support ideas and further the class knowledge on the discussion topic.
Assume that the returns of these stocks are independent of each other. Find the mean and standard deviation of the total amount that this investor earns in one year from these four investments.
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