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State the definition of spillover benefits, give 2 examples.
i. Define and explain spillover benefit.
ii. Give two example of a spillover benefit situation and explain
I had a hard time grasping Straub and Werning (2014) (no paywall). I understand the general environment, but could someone explain intuitively what exactly the mistake in the original Chamley-Judd calculations was, related to the optimality of zero-c..
What is each fisherman's profit-maximizing output now. Find the market price and the total output.
Consider the following production function: f(k,l) = k^1/3 + l^1/3. Does an increase in the tax increase the cost linearly? Why or why not? HINT: Consider the partial derivative of the cost function with respect to t.
Suppose you are given the following Total Product Function: Q=100 K^3/2 L^4/2 M^4/7 ,where Q is total output or units produces; K, capital; L, labor; and M, materials.; that is, this is a input factor production function. Suppose K = 1,000; L = 200 w..
In a country with a labor force of 200 people, a different group of 10 people becomes unemployed each month but becomes employed once again a month later. No others outside these groups are unemployed. A. What is the country’s unemployment rate? B. W..
If you drive 20,000 miles per year and the price of gasoline for this analysis is assumed to be $4.00 per gallon, which model should you purchase?
what will be price of wheat, how much total wheat will be demanded and how many wheat farms will there be.
Assume Okun's law holds also a one percent (%)age point rise in the unemployment rate reduces real output by 2% of full-employment output. The expectations-augmented Phillips curve.
Suppose you have the choice of investing in (A) a zero-coupon bond, which costs $500 today, pays no coupon during its life, compounds semi-annually, and then pays $1,000 after 10 years, or (B) a bond which costs $750 today, pays $25 in interest semi ..
In customer theory there are some useful analytic results that can come from studying homothetic utility functions of consumption for each.
The cost of maintaining a public monument in Washington, D.C., occurs as periodic outlays of $1,000 every year and $5,000 every 5 years. If the first outlay is now, the capitalized cost of the maintenance at an interest rate of 10% per year is closes..
For the range of prices that you are planning to charge, own price elasticity of demand is believed to be -1.5. Calculate the optimal (profit maximizing) price that you should charge. Show all calculations.
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