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A hedonic regression is run on the selling prices P of houses near an airport that sold within the last five years that results in the equation P =500000−400×N+0.75×income where P is the most recent selling price in current year dollars, N = 50/d, and d is the distance from the airport in miles. By current year dollars one means that the selling prices have been adjusted for inflation and the base year is the year of today’s date. 1. (a) What is the marginal willingness to pay on a per house basis for noise abatement when the benchmark is the noise level at 1 mile from the airport. 2. (b) What is the annualized marginal willingness to pay assuming an interest rate of 10%.
The ending of company prepayments balance is expected to be the same as its beginning prepayments balance.
No suppose that the soy industry produces differentiated products and is characterized by EOS and monopolistic competition. Auto industry is still perfectly competitive. what do you mean by the pattern of trade.
Compute what happens to the quantity of K. Your answer must include the appropriate sign. Correctly round your answer to 2 decimal places. Do NOT include the percent sign as part of your answer.
Suppose that the inflation rate is currently 4%. The level of potential real GDP is estimated at $4 trillion and the level of current real GDP is estimated at $3.75 trillion. Use the Taylor rule to estimate the target Federal funds rate
problem-solving questionuse the following data for a firms output at various levels of employment l to calculatea its
Which of the following will occur if labor demand and supply simultaneously increase?
q. 1. clients to live theaters inc. can be partitioned into 2 groups seniors and everyone else. the converse demand
Suppose the authorities are considering either a tradable emission permit system, in which they give half the permits to each firm, or a tax system. If both systems work perfectly, how much will the firms have to pay, in total, for pollution reductio..
Sexual violence in jails and prisons has been discussed in the textbook in several chapters. This unit’s required reading also discusses it. Do you think that the new Prison Rape Elimination Act will make an impact in curbing this problem? Does the n..
Why is each the policy necessary? The welfare of consumers, producers, and society (the winners and losers) before and after the policy
Consider a monopolist facing two customer groups. The first has demand p1 = 10 - q/2 and the second has demand p2 = 20 - q. The firm has marginal cost MC(q) = q, where q = q1 + q2 is the total amount sold. Suppose a regulator could set one per unit p..
A large city in the mid-West needs to acquire a street-cleaning machine to keep its roads looking nice year round. A used cleaning vehicle will cost $85,000 and have a $20,000 market (salvage) value at the end of its five-year life. Find the breakev..
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