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Farmer Fran can grow soybeans and corn. She can grow 1500 kilograms of soybeans or 3000 kilograms of corn on a hectare of her land for the same cost. The price of soybeans is $1.50 per kilogram and the price of corn is $0.60 per kilogram. Show the benefits to Fran of specialization. What should she specialize in?
Often, insurers will let policyholders choose a low deductible, or will offer them a larger deductible in exchange for a substantial reduction in the premium. Explain how this two-tiered system helps insurers deal with the problem of adverse selec..
how will (a) an unexpected 3% fall in the price level in the goods and services market differ from (b) 1% inflation when 4% inflation had been expected What impact would (a) and (b) have on the real price of resources, profit margins, output, and ..
A natural spring runs under land owned by ten people. Each person has the right to sink a well and can take water from the spring at a constant marginal cost of $5 a gallon. Table 2 sets out the marginal external cost and the marginal social benef..
The construction of a dam will cost $1,000 at time 0, $500 in year 1, $500 in year 2. It will be completed at the end of year 2. Beginning in year 3, maintenance costs will be $100 per year through year 10. From years 11 on, maintenance costs will..
The theory of investment in this chapter predicts an optimal investment schedule that is a negative relationship between the investment and the real interest rate. Is this what you observe in the data? Explain.
project management and systems engineering are divided into two distinct categories. What management tasks are missing from the figure?
Show that this individual behaves as if she were infinitely lived with an effective discount factor of ρ + ν.
q1=20 Q2=15 Q3=27 mARKET EQUILIBRIUM IS $45 price at A=85 C=5 F=59 G=31 what is the dollar value of the dead weightloss when output level q2 is produced what is the total surplus wen output q2 is being produced
Which UPS features are most important to such a system ? Which type of UPS do you recommend for this system?
A country is described by the Solow Model with a production function y = \(k^{1/2}\) where y is output per worker and k is capital per worker. Now suppose that the fraction of output invested (or saved) is 50%. Assume that the depreciation rate is..
Such a game appears in many films, including Die Hard, Crimson Tide, and The Maltese Falcon.
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