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What is investment? Why does investment decrease when the real interest rate increases? What role do expectations play in investment?
Dx = Px-2 I1.5 PY1.5. From the information above, what are the values of price elasticity Income elasticity How much will D change if Px is cut by 5% and income rises by 10%
a. Based on the two-period model covered in class, write down thefirms budget constraint in period t. b. Derive the firm's demand for labor in period t as a function ofwages, interest rates and a.
Find the equilibrium price and quantity
What are some mechanisms for protecting the environment
Suppose that recent innovations in production techniques have led to a decline in the cost of GOR-TEX®, a fabric used in the production of waterproof outerwear. The innovation leads to a production cost savings of $30 per jacket.
Assume that a monopolist considering to spend 500.000 usd on large campaign to promote the their products.The demand curves are defined by p = 150 - 3q, where q is the output-quantity in 1000-usd. By executing the campaign the firm expects the new de..
What are the arguments on both sides of this debate?
The current price in the CPI for a pound of coffee is $7.25, and it is projected to increase next year by 2%, then decrease by 3% in the following year, and then increase by 5% the third year. What is the average inflation rate for the projected p..
Consider an investment project with the following cash flows: n Porject A Project B 0 -$150,000 -$120,000 1 $30,000 $25,000 2 $25,000 $15,000 3 $120,000 $110,000 A) Compute the IRR for each investment
The company you work for has a high speed 5-axis milling machine which was purchased 5 years ago for $200,000 and has a 10 year life. This machine is currently idle and can be used to make a product designed by a research institute
If the local government can enforce a rent-control law that sets the maximum monthly rent at $1000, will there be a surplus or a shortage? Of how many units? Explain how the market can adjust?
Suppose now some appraiser can identify the painting with 90% if its not a counterfeit, and 80% if it is a counterfeit. If the appraiser chargers $500 for consultation, should the collector pay the consultation fee and ask for consultation
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