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Income is 90 and savings is 2. Then income increases to 100 and consumption is 97. What will the marginal propensity to consume be?
A monopolist has two types of customers. There are 100 of type A, who will each pay up to $10 for a single unit of goods, and 50 of type B, who will each pay up to $8. Neither is willing to purchase additional units at any price. If it must charge..
Suppose the government imposes a price ceiling of $50 on a market characterized by the following information:Qd = 700 - 2P Qs = 100 + 4P Calculate the magnitude of deadweight loss from the price ceiling.
How else might you try to measure changes in the economic importance of government relative to private activity?
Rewrite the model to show that this is in fact a two-variable model rather than a three-variable model. Define the parameters
Two cournot duopolists produce in a market with a demand P(Q)=100-Q. The marginal cost for Firm 1 is constant and equals 10. The marginal cost for Firm 2 is constant and equals 25. The two firms want to merge, which would leave a monopoly.
What is the equilibrium value of n? How is this value affect by an increase in t?
Determine the capitalized cost a series of cash flows starting at the end of the first year with $400 and increasing at the rate if $100 for the next 5 years. The series of cash flows from 1 to 6 repeats forever. MARR=6%
What percentage of the population of each country is in the labour force and what are the similarities and differences between the three countries in terms of the percentage of the population that works in each type of industry?
Consider the following demand equations for two differentiated products produced by independent firms.For simplicity assume that costs are zero for both firms. Price reaction functions for the two firms can be derived as
Suppose the consumption function is given by C = a + bYd where a and b are constants (b is the marginal propensity to consume), and Yd is disposable income, equal to Y - T. Taxes vary with income and are equal to t0 + tY where t0 and t are constant..
What are some of the subsidiary targets referred to in the quote? How would they be affected by alternative policy combinations?
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
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