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Suppose Hodor and Bran are the only two consumers in society. Each has a utility function of the form U=X1/2Y1/2. Good X is a private good and good Y is a public good, the price of good X is Px and the price of Y is Py, and each have an identical income of 100. How much of the public good will be purchased? How much should be purchased?
An economy is in internal balance but have a Current Account deficit. Its IB schedule is steeper than the EB schedule.
The following statement is given, “It’s not true there are substitutes for anything. If you want omelets, you need eggs. There are no substitutes for eggs in an omelet.”
In a perfectly competitive industry, the price of good A is $2. If a firm in this inudustry decides to increase its price to $2.50, it will:
Video Concepts, Inc. (VCI) markets video and film equipment through various retail outlets. VCI has just acquired the DVD distribution rights to a new film. VCI estimates the total market size for a film of this type to be 100,000 units. Other data a..
A farmer has a production function f(L) where the input is capital (L). The cost of this loan is L(1+i). The farmer also has an outside option (loan from family member) which generates a profit of A.
What does the president and congress do to stimulate the economy? What does the president and congress do to contract the economy? What does the Federal Reserve do to stimulate the economy? What does the Federal Reserve do to contract the economy? Wh..
Discuss the difference in the way the budget audit occurs at the federal level and state and local level. What is the purpose of the audit?
Last year, Berkeley, CA passed a tax on yoga classes of $4 per yoga class. Suppose that the pre-taxdemand for yoga classes is QD = 2000 – 100P, and that the pre-tax supply of yoga classes is QS = 300P –200. Calculate the initial equilibrium price and..
Complete the first column of the following table by computing the cross-price elasticity between penguin patties and flopsicles
Problem 1: Assume that the long run total cost function for each firm in a perfectly competitive industry is LRTC = q3 - 4q2 + 8q and the market demand function is Q = 2000 - 100p. Calculate:
As a manager, it is important to understand how the business cycle affects supply and demand, prices, and how economic shocks will impact your company's markets, supply chain, and financing.
What is the Federal Reserve (Fed) all about? Which Federal Reserve District Bank is closest to you? Who is the current Chairman of the Fed? Should the Fed remain independent from political authority or should the President and Congress have a say in ..
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