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Question: 1. If the number of a protected species of animal in a reserve increased continually from 600 in 1992 to 1,450 in 2002, what was the annual growth rate?
2. Over a 12-month period what continuous growth rate is equivalent to a discrete growth rate of 6%?
3. What discrete annual growth rate is equivalent to a continuous growth rate of 6% persisting over 12 months?
4. What interest rate would you prefer to be used to add interest to your savings: 8% applied on a continuous basis or 9% applied once a year?
Greener Grass Company (GGC) competes with its main rival, Better Lawns and Gardens (BLG), in the supply and installation of in-ground lawn watering systems in the wealthy western suburbs of a major east-coast city. Derive algebraically the quantities..
The net exports effect is the impact on a country s total spending caused by an inverse relationship between the price level and the net exports of an economy. Using this principle, discuss how the following economic variables change during an econom..
You are manager of a small pharmaceutical company that received a patent on a drug three years ago. Despite strongest sales(125milion last year) and a low marginal cost of producing the product ($0.25 per pill) your company has yet to show a profit f..
Graphically show deadweight welfare loss due to monopolies and then explain what it means. How can we see or feel this deadweight welfare loss?
Consider the real intertemporal model with investment. What is the effect of an increase in delta, the depreciation rate, on the representative firm's investment decision, and on its optimal investment schedule? Explain your answer carefully using th..
In order to engage in price discrimination, a monopolist has to be able to determine that there are different groups of consumers that have different ________ for the product.
Suppose that there are only two goods, books and coffee. Wally gets utility from both books and coffee, but his indifference curves between them are concave rather than convex to the origin. What do these particular indifference curves tell you about..
In Music Ville, the price elasticity of demand for CD players is 1.3, the income elasticity of demand for CD players is 0.4, and the cross elasticity of demand for CD players with respect to MP3's is 0.1. If incomes in Music Ville increase by 15% wit..
Many automobile manufacturers routinely advertise the safety of their cars, yet airlines generally do not even mention safety in their advertising. Can you suggest an explanation for this difference?
Suppose that the real interest rate increase to r = 0.11. Elucidate real output have to be for equilibrium price level to remain at its initial value.
how the United States and the other country differ. Which of the two countries has better prospects for the future and why? Provide a reasoned opinion.
Identify the three sources of cost that vertical integration is intended to mitigate or remove. However, no firm is fully integrated, implying there is a cost to vertical integration. Identify this cost and briefly relate it to firm size and scope..
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