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Question: Assume there is a river that runs past twenty homes and the river has a tendency to overflow its banks and flood the homes. Assume that at a cost of $200,000 that a dam can be built that will prevent the river from overflowing its banks. Assume that each homeowner would be willing to pay as much as $60,000 toward the construction of the dam. Explain to me what each individual homeowner thinks would be rational and why? Is it likely that the dam will be built? Why or why not? What could government do that would improve the overall outcome? Explain your reasoning.
Florida's growers are shipping only a quarter of their usual 5 million pounds a week. The price has risen from $6.50 for a 25- pound box a year ago to $30 now. Source: USA Today, March 3, 2010, Make a graph to illustrate the market for tomatoes in..
It is unclear based on the information given above whether profits at Netflix increased or decreased as a result of the price increases.
If country A is the lowest opportunity cost producer of X and country B is the lowest opportunity cost producer of Y, what happens to their absolute and comparative advantages if country A suddenly becomes three times more productive at producing ..
The following article appeared on the front page of the Wall Street Journal on April 17, 1998: The public, by 79% to 17%, favors raising the minimum hourly wage
High capital-asset ratios are desirable as they offer a buffer against non-performing bank loans.The ratio is defined as the excess of bank liabilities over assets.
price fixing is a per se violation of the clayton antitrust act. from the materials in the library and the internet
What is the equilibrium quantity in this market? Round the equilibrium price to the nearest cent, use that rounded price to compute the equilibrium quantity.
List three factors that can change the economy's potential output. What is the impact of shifts of the aggregate demand curve on potential output? Illustrate your answer with a diagram.
Presume that Denmark and France both wine and produce oil. France's opportunity cost of producing a bottle of wine is 5 barrels of oil while Denmark's opportunity cost of producing a bottle of wine is 10 barrels of oil.
If inflation is a major issue in the economy, what would be the correct fiscal policy response from an economic perspective? Why would members of Congress be unlikely to support such actions?
Calculate demand elasticity at purchase price 40 and purchase price 60. Comment on your findings. Find the marginal revenue curve and reflect it.
Suppose a consumer has a utility function U(x1, x2) = x1x2. Find the consumer's income effect for good 2. Find the consumer's substitution effect for good 2
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