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Question: John's project has a five year term, a first cost, no salvage value, and annual savings of $20000. After doing present worth and annual worth calculations with a 17% interest rate, John noticed that the calculated present worth for the project is exactly three times the annual worth. What is the project's first cost?
The firm's production function is y=min{2X1,X2}. The cost function of the firm is given by C=w1X1+w2X2. What are the firm's conditional input demands for input 1 and input 2? What is the firm's total cost function? Draw the graph.
Describe the Harrod-Domar growth model, and explain precisely how the model illustrates dynamic instability. Why is it often called the “knife’s edge model”?
How do the different economic systems (capitalism and socialism) differ in the way they answer these three questions - What to Produce? How to Produce? and For Whom to Produce?
Draw a standard supply and demand diagram which shows the demand for new housing units that are purchased each month, and the supply of new units built and put on the market each month.
Would you mind sharing with the class a simply numerical example showing how the CPI is calculated. What can you share with the class concerning the substitution bias associated with the CPI.
The market supply curve is given as P = 100 + 2Q. What is the equation for the new market supply curve
Suppose you want to go out for dinner. What are your fundamental objectives? Create a fundamental-objectives hierarchy.
Write down any set of numbers. Calculate thier mean, and then the average deviation from the mean. c) Prov that, for every possible sample of n observations, the average deviation from the mean is exactly zero. Is this also true for deviations fro..
The ABC Block Company anticipates receiving from its investments $4000 next year with increases of 5% per year. N equals 5 years.
multiplenbspchoice 1. the baseline level of consumption coa. is the amount by which consumption spending changes in
Define Weak Pareto Efficiency and Strong Pareto Efficiency. Add the assumptions and show that an allocation is Weakly Pareto Efficient if and only if it is also Strongly Pareto Efficient
What is an intertemporal budget constraint, and where does it come from? What is the economic interpretation of the intertemporal budget constraint?
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