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LO13-3 4. According to the News on page 288, how much will annual shipping costs increase for each saved life?
LO13-3 5. If the average U.S. worker produces $100,000 of output per year, what is the annual opportunity cost of the federal regulatory workforce (Table 13.1)?
LO13-4 6. Suppose a corporation has two subsidiaries, one of which is unregulated and sells all of its output to the other, regulated subsidiary. Permitted profits at the regulated subsidiary are equal to
10 percent of total costs. Here is the initial profit picture for the subsidiaries:
Unregulated Subsidiary
Regulated Subsidiary
Total revenue
$800,000
N/A
Total costs
$500,000
$1 million
Total profit
$300,000
$100,000
If the unregulated subsidiary doubles its selling price, what happens to profits at
(a) The unregulated subsidiary?
(b) The regulated subsidiary?
Data for the market for graham crackers is shown below. Calculate the elasticity of demand between the following prices.Price of crackers Quantity Demanded (per month)$3 80 $2.5 120
A person buys a $1,000 face value bond 2 years after its issue. He intends to keep it until its maturity date, which is 18 years from now. This bond pays 6% annually. What price can he pay now for the bond so that his investment earns 8%?
Given an expected real interest rate of 2 percent. For each of the expected inflation rates of 0, 2, 4, 6, and 8 percent. How do I calculate the nominal interest rate and the after-tax expected real interest rate if the tax rate is 30 percent
Suppose the number of points on an economics midterm (P) can be characterized by the following production function: P = 10H - 4B where H is the number of hours spend studying and B is the number of beers in the week prior to the midterm.
Determine which of the two machines should be selected, using an AW-based rate of return analysis, if the MARR is 18% per year. The semi-automatic machine has a first cost of $40,000, an operating cost of $100,000 per year
Amalgamated Popcorn, Inc. is a fairly small firm selling bags of flavored gourmet popcorn in a popular mall. As shop owner and operator, you have observed that your daily sales tend to follow a pattern that can be stated as: QP = 500 - 100PP + 1.2..
Compute the supplier surplus at this equilibrium.
Why is self-regulation by the audit profession in the US no longer in place?
What are some of the benefits and costs that contribute to your customer value from each of the following products: a wristwatch, a weight-loss diet, a cruise on a luxury liner, and a checking account from a bank
Timmy currently has $100 to last him a whole weekend. Let T represent his consumption on Saturday, and N represent his consumption on Sunday. His utility function is given by U(T,N)=min(T,3*N). How much of his $100 will Timmy choose to spend on Su..
The last piece of historical legislation deals with the history of the Community Reinvestment Act.
Implement your procedure on the phoneme data, and try it out. Divide the data into a training set and a test set (50-50), making sure that speakers are not split across sets (why?). Use K = 1, 3, 5, 7 centers per class, and for each use J = 5, 10,..
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