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From the ninth century B.C. until the proliferation of gunpowder in the fifteenth century A.D., the ultimate weapon of mass destruction was the catapult (John Noble Wilford, "How Catapults Married Science, Politics and War," New York Times, February 24, 2004, D3). Hero of Alexandria pointed out in the first century A.D. that it was not enough to have catapults. You needed your potential enemies to know that you had catapults so that they would not attack you in the first place. As early as the fourth century B.C., rulers set up what were essentially research and development laboratories to support military technology. However, unlike today, there was a conspicuous lack of secrecy. According to Alex Roland, a historian of technology at Duke University, "Rulers seemed to promote the technology for immediate payoff for themselves and had not yet worked through the notion that you ought to protect your investment with secrecy and restrictions. So engineers shopped their wares around, and information circulated freely among countries." Given this information, describe a ruler's optimal strategy with respect to catapult research, development, deployment, and public announcements. Should the strategy depend upon the country's wealth or size? What role does credibility of announcements play?
he cost of flowers business. Jen left job paying 40,000 per year to start her own florist shop in a building she owns. the market value of the building is 200,000. She pays 30,000 per year for flowers and other supplies, and has a bank account tha..
Two firms, Cappcore and Tradiola, are each emitting 6 units of pollution, and the government wants to reduce the total level of pollution from the curent level of 12 to 4. To do this, the government caps each firm's allowed pollution level at 2.
Seth could consume $120 next year if he saved all his current earnings. He expects to earn nothing next year. The intertemporal budget constraint for Seth is given by the equation C2 = 120 - 1.2C1 where C1 = possible consumption in year 1 and C2 =..
Sort the data set by GDP and perform a Goldfeld-Quandt test for heteroscedasticity, running regressions using the subsamples of 14 countries with the smallest and greatest GDP.
The U.S. market requires hardcover books with a marginal cost of $24.00 while the overseas market is normally served with soft-cover texts having a marginal cost of only $18.00.
(If you do not remember some of these concepts, quickly review them from your principles of economics text or class notes.)
Firm 1 at point 0 and firm 2 at point 1. The consumers transportation cost are linear in the distance to the firms localisation (d1 and d2) and the consumers are uniformly distributed on the intervall (0,1) where x E (0,1) denotes the consumers p..
Consider a bond that promises to pay $100 in one year. a. What is the interest rate on the bond if its price today is $75? $85? $95 b. What is the relation between the price of the bond and the interest rate c. If the interest rate is 8%, what is the..
Suppose 10-year T-bonds have a yield of 5.30% and 10-year corporate bonds yield 6.75%. Also, corporate bonds have a 0.25% liquidity premium versus a zero liquidity premium for T-bonds, and the maturity risk premium on both Treasury and corporate.
A five-person city is debating the provision of the annual July 4th Fireworks Display that everyone in the city would be able to enjoy. The cost of providing the display is fixed at $250. The willingness to pay for the festival is given in the fol..
When is producer surplus equal to economic profit (for either a firm or an industry)? When producer surplus and economic profit are not equal, which is bigger?
a mining company plans to invest 50000 in a project. the annual operating cost is expected to be 6000 and the annual
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