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Sam currently earns $30,000 a year. The government is considering a policy that would increase Sam's income by 12 percent, but raise all prices by 8 percent. What is Sam's compensating variation for the proposed policy? Can you compute it without knowing his preferences? Why or why not?
buy a computer for $2,500 now, keep it for 8 years and then sell it for $800. The computer is not expected to require any maintenance for the first 3 years, but starting in year 4, the maintenance cost will be $250 per year. Alternatively, you can..
What can this model help us explain that strict endogenous and neoclassical growth models cannot?
where a > 1. In addition assume that the firms target own profit maximization, compete (simultaneously) in quantities and have marginal costs equal to c1 = c2 = c. Assume that 1 > c > or equal to 0. Describing the necessary mathematical steps, and..
katie likes sushis and soy milkm.her in difference curves are bowed in and towardthe origin and do not intersect the
Ten years ago a machine cost $800,000. Now, the same machine costs $1,200,000. Calculate the average rate of inflation per year.2) An investor bought a tax-free provincial bond, at a cost of $1000 which will pay $50 interest each year for 20 years...
Maha claims that she could collect 10 oranges or can catch one fish per hour from pond besides their hometown in village while khadija claims that she could collect 2 oranges or 2 fish per 2 hours.what is the opportunity cost of catching fish for ..
Pat and Kris are roommates. They spend most of their time studying (of course), but some time for their favorite activities: making pizza and brewing root beer. Pat takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza.
Jim deposits $3,000 in a savings account that pays 6% interest compounded monthly. Three years later he deposits $4,000. Two years after the 4,000 deposit, he makes a final deposit of $6,000. Four years after the $6,000 deposit.
Demand: Q=225-15*P Costs: 300 + 12Q + 0.5Q2(superscript) a. What is the marginal revenue function for this firm b. What is the marginal cost function for this firm c. What is the profit maximizing level of output
An engineer and her husband operate a pet sitting service on the side. They want to add a daily service of a photo placed online for pet owners who are traveling. The estimates are: equipment and setup cost $600
Once you have posted your assignment, read and respond to at least one other student's posting. Provide feedback to the student on how he/she addressed each of the areas.
How much can Wells Fargo lend to developer who will repay the loan by selling first 6 view lots out of 13 lots at $190,000 each 2 year from now? Assume the bank will lend at a nominal 14% per year, compounded semiannually.
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