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Consider the lab-equipment model of Section 13.1, but modify the innovation possibilities frontier to be
where φ > 0.
(a) Define an equilibrium and characterize the market clearing factor prices and determine the free-entry condition.
(b) Show that without population growth, there will be no sustained growth in this economy.
(c) Now consider population growth at the exponential rate n, and show that this model generates sustained equilibrium growth, as in the model analyzed in Section 13.3.
Use your own perspective to evaluate the approaches used by your selected criminal justice agency. Do you agree or disagree with how they gather and analyze information?
The other, smaller manufacturers set their price based on that established by Big Steel. Discuss how Big Steel should use the information on the supply of steel by other, smaller competitors when it determines its profit maximizing price.
The inverse market demand in a homogeneous product cournot duopoly is P=280-2Q=280-2(q1+q2) and costs are C1(q1) = 20q1 and C2(q2) = 30q2. a. How much output will each firm produce in equilibrium b. What are the equilibrium market shares for these t..
Did this intervention "correct" the existing market demand?
A city is spending $20 million on a new sewage system. The expected life of the system is 40 years, and it will have no market value at the end of its life. Operating and maintenance expenses for the system are projected to average $0.6 million pe..
d. explain why the production possibility frontier of part c is concave. e. sketch the realtive price of food as a function of its output in part c. f. if consumers insist on trading four units of food for five units of cloth, what is the relative pr..
For the same loan described under Q3, the individual decides that instead of selling the house after the 71st payment, to keep it and shorten the pay off period by increasing the montly payment by $150 each month. What is the number of months re..
How did Samsung's unveiling of the Galaxy S5 affect the demand for the S4 (News, p. 51)? What determinant(s)of demand changed? How did Walmart's price cut compensate? LO3-1
Coal prices moved in sympathy with oil prices, with the result that coal companies earned pure economic profits. Since coal is a homogeneous good and the market is competitive, what happend in this market.
(2) What increase or decrease in the commercial banks' reserves took place in each transaction (3) Assuming a reserve ratio of 20 percent, what change in the money-creating potential of the commercial banking system occurred as a result of each tr..
Hurricane delayed the cash inflows that the managers of firm Metro expected from a project that being built and increased the cash outflows over the next two years. the NPV of this project is now negative.
What is the multiplier? How is it calculated? Why is the multiplier related only to consumption spending?
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