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The aggregate demand for cookies is perfectly inelastic. Quantity demanded is 10 cookies regardless of price. The aggregate supply of cookies is perfectly elastic. Quantity supplied is 0 if the price is below $5 and infinite at $5.
A. Find the equilibrium.B. Suppose there is a $1 tax on each cookie. Find the new transaction volume.C. What is the tax incidence?D. What does a Laffer curve look like in this market?
Two firms control the entire market for gasoline. They both have identical marginal costs of $1/gallon. The inverse demand for a gallon of gasoline is given by P(G)=10-1.5G. Now the firm's agree to collude, but Firm A is a bastard, and after agree..
Determine the two equal deposits, the first deposit required now and the second deposit at the end of year 6, so that you can withdraw $2,000 at the end of each year for the next 12 years. Assume that money earns 4% interest, compounded monthly.
suppose an economy's per-woker production function is y=3k^.5. Its saving, depreciation, and population growth rates are estimated at .2, .04, and .02 respectively. Calculate the steady state values of the capital-labor ratio, output per worker, an..
cool-aire corporation manufacturers a line of room air conditioners. Its break even sales level is 33,000 units. Sales are approximately normally distributed. Expected sales next year are 40,000 units with a standard deviation of 4,000 units
a. a power level of 100 W is 6 db above what power level. b. determine the dBm level for an output power level. c. find the output voltage of an amplifier if the applied voltage is 20mV and a dBv gain of 22 dB is attained.
Assume you are an analyst assessing national costs of mercury abatement. Your staff has estimated the marginal social costs to be MSC = 0.8Q and the marginal abatement cost across polluters to be MPC = 0.65Q, where Q is measured in percent abateme..
To dig a hole, it takes one person (P) and one shovel (S). The total number of holes dug is given by the production function h=f(P,S)=min(P,S). If you currently have 2 persons and 4 shovels, what is the marginal product of persons
In a closed economy the following holds: Household consumption C is given by the consumption function: C = 100 + 0.75Yd Planned investments are I = 250 (independent of Y ). Household disposable income: Yd = Y - T, where Y is production. Taxes depend ..
The alternatives are, Alternatives Cash flow A B C Installed cost $12,250 $14,000 $16,500 Uniform annual Benefit $ 2,750 $ 2,700 $ 2,950 Salvage value $ 1,500 $ 2,500 $ 5,500 Useful life in Years 8 12 12 Due to the unknown rate of technology trans..
The ABC marketing consulting firm found that a particular brand of portable stereo has the following demand curve for a certain region: Q=10,000-200P+0.03Pop+0.6I+0.2A Where Q is the quantity per month, P is price($), Pop is population
elizabeth M. suburbs makes $200 a week at her summer job and spends her entire weekly income on running shoes and designer jeans, because these are the only two items that provide utility to her. Furthermore, Elizabeth insists that for every pair ..
You are buying a new car for $20,000. You signed a contract for the loan for 4 years. Your loan has an interest rate of 12% interest (APR). You make monthly payments and the interest is compounded monthly. What is the monthly interest rate
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