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Big Top is the only circus in the nation. Table 2 sets out the demand schedule for circus tickets and the cost schedule for producing the circus.
If Big Top is regulated to charge a price equal to average total cost, what is the quantity of tickets sold, the price of a ticket, and economic profit? 10. Draw a graph to illustrate the circus market if regulators set a price cap that enables Big Top to break even. Show the deadweight loss in your graph.
If you were working for a state legislature that was designing a universal coverage system, how would you attempt to control costs?
Discuss the potential role of each of the factors
The U.S. Dairy Industry wants to estimate the mean yearly milk consumption. A sample of 13 people reveals the mean yearly consumption to be 58 gallons with a standard deviation of 18 gallons. (a-1) What is the value of the population mean
For both sets of calculations, compare the firm's output price and the calculated average variable cost and average total cost. Should the firm shutdown immediately when the total fixed cost equals $1,000,000
what mathematical module can be used to test the hypothesis?
total output increases from 100 units to 110 units per week. Suppose the market price of output is $25 per unit. What is the maximum weekly wage at which the firm would hire that additional worker
Build a time series model for the log earnings series. Perform model checking and write down the fitted model - Compare the two time series models. Which model is preferred in terms of fitting
You are given the following information on the bond market: Money available on January 1, 2004: one thousand dollar interest rates on January 1, 2004, on bonds of different maturities: 1 year, 4%; 2 year, 5%; 3 year, 5.5%; 4 year, 6%
Suppose that the price of a stock is $50 at the beginning of a year and $53 at the end of the year, and it pays a dividend of $2 during the year. Calculate the stock's current yield, capital-gains yield, and the return.
Suppose that the marginal product of capital increases for each level of capital, given the labor input level. What is the effect of this capital productivity increase on the aggregate production function?
Suppose that each firm that tries to produce autos must go through the shakedown period of high costs on its own. Under what circumstances would the existence of the initial high costs justify infant industry protection?
Compute the producer and consumer surpluses after the imposition of the tax and also the DWL.
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