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When a good is limited, some means must be found to ration the scarce commodity. Some examples of rationing devices are auctions, ration coupons, and first-come, first-served systems. What are the strengths and weaknesses of each?
Albert Einstein once noted that" compounding of interest is one of humanity's greatest inventions". to illustrate the mind-boggling effects of compounding suppose $100 is invested at the end of each year for 25 years at i=50% per year. In this cas..
Formulate the household optimization problem in terms of the current-value Hamiltonian and derive the necessary conditions for an interior continuous solution.
read the following article and answer the questions at the end.but i dont feel stimulated by john slaytonpresident
When average consumer income increases from $40,000 to $44,000 in Mapleville, the quantity demanded of widgets went from 10 to 9 units per capita, even though the price of widgets and other products did not change.
How do the government bureaus different from private companies discuss why is there good reason to believe that bureaucrats will seek to supply more than efficient level of their output in any year?
Evaluate the relative importance of economies of scale and comparative advantage in causing the following
In the exogenous growth model what are the effects on the steady-state consumption and capital-labor ratio of an increase in the savings rate and of an increase in the population growth rate? Give a graphical illustration of each effect on the ste..
Rent-to-Own Equipment Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year..
The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit and an output of 2 million units. The price that consumers are willing to pay for this output is $40 per unit. If it produces this output.
A firm can manufacture a product according to the production function Q = 2(K)1/2(L)1/2 where K represents capital equipment and L is labor. The company has already spent $10,000 on the 4 units capital. a. Calculate the average product of labor
Scientists have developed a bacteria that they believe will lower the freezing point of agricultural products. This innovation could save farmers $1 billion a year in crops now lost to frost damage. If this technology becomes widely used, what wil..
1.) Suppose \(P_B = m = $1\) derive Larry's demand function. 2.) Larry buys his apples from Mary. Mary supplies apples according to \(q_s = -4 +20p\) What is the equilibrium price and quantity of Apples 3.) What is the price elasticity of demand in..
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