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Assume the same demand conditions as stated in Problem 1, but let the discount rate be 0.10 and the MEC be $4.
(a) How much would be produced in each period in an efficient allocation?
(b) What would be the marginal user cost in each period?
(c) Would the static and dynamic efficiency criteria yield the same answers for this problem? Why?
Suppose a firm's total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10%, and its debt increases from 40% of total assets to 60%. Under these conditions, the ROE will decrease.
they pay 20 cents to the Lord High Mayor of Rabushka. What is the marginal tax rate in Rabushka for a worker whose income is $1 million?
Suppose a firm's inverse demand curve find the firm's optimal quantity, price also profit by using the profit also marginal profit equations.
ellen and may can produce two goods in a day breakfast bars and frog food pellets. in a single day may can make 10
An electric utility uses natural gas as fuel for a large multi-unit power plant. With all units in-service, for a given hour the plant's fixed cost is $120,000 and its variable cost is $50 per megawatt demanded. What is the hourly demand in megawatts..
What would happen to unit sales and total revenue for this textbook if the bookstore reduced it's price? Is the demand for iPhones price inelastic or elastic? Why? Is income elasticity high or low?
Which of the following would be included in GDP?
Consider a positive AD shock hitting the economy. Draw an AS/AD diagram and show both the short-run and long-run effects of the shock. And then, explain step by step the adjustment process after the shock, i.e. both the short run deviation from LRAS ..
The following are actions that the Food and Drug Administration (FDA) can take in regulating cosmetics EXCEPT:
Suppose that medical researchers discover a new drug which slows the aging process allowing the average life span in the United States to increase to 95 years of age. The lifecycle hypothesis suggests that
Indicate two public policies that would be appropriate for addressing this situation. Explain their impact on your graph.
when a cold snap hits florida, the price of orange juice rises in the supermarkets throughout the country. Illustrate the supply and demand table for this scenario.
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