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a. What is the total welfare if there is no government intervention?
b. What is the total welfare if the government provides a production subsidy of s per unit?
c. What is the gain or loss in welfare if the government provides a production subsidy of s per unit compared with the unregulated monopoly (this is, Welfare with subsidy - Welfare with no subsidy)?
The most you would be willing to pay for having a freshly washed car before going out on a date is $15. The smallest amount for which you would be willing to wash someone else’s car is $12.50. You are going out this evening and your car is dirty. How..
The college has annual fixed costs of $10 million, also the variable cost for every additional student is $5,000.
If Jud offered the Krauses one price and inadvertently typed a different, higher price into the contract, can Jud be held to the typewritten amount?
A firm has a production function,q=A LaK1−a, where 0
who operates the industry as a monopoly and seeks to maximize profits from the sale of computers. Elucidate which of the following is a likely consequence of the monopolization of the industry.
Suppose you loan $5,000 to a friend to help him start a new restaurant business. Your friend signs a promissory note at a simple fixed interest rate of 5% per year. This note requires repayment in one lump sum five years from the date of the loan. Ex..
If the variable is almost normally distributed does that mean you use common distribution.
Suppose a perfectly competitive firm sees that price is $23 in the market place. It notices that the cost of producing the next unit of output is $26. What advice would you give to this firm?
Assume a market with many individuals who trade goods. The number of goods available for trade grows as time evolves. In the first period, there is only one good to trade, in the second period, two goods, and so on (obviously in the Nth period there ..
A firm has a production function given by q=2 sqrt(KL) In the short run, the firm’s amount of capital equipment is fixed at K=100. The rental rate for K is v=$1, and the wage rate for L is w=$4. Find the firm’s short-run total cost function (STC). Ca..
q. without trade the united states produces 45000 units of clothing and 150000 cans of soda. without trade brazil
Gavin Jones’s friend is planning to invest $1 million in a rock concert to be held 1 year from now. The friend figures that he will obtain $3 million revenue from his $1 million investment - unless, my goodness, it rains. What is the expected rate of..
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