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Pure gasoline has an energy density of 115,600 BTU per gallon, while ethanol has an energy density of 75,670 BTU per gallon. Gasoline cost $3.70 per gallon.
What would the price of E85 (85% ethanol, 15% gasoline) have to be for its cost to be the same as that of pure gasoline?
Consider a perfectly competitive market where each firm faces a market price of P = 16. Each firm's cost function is TC = 50 + 4q + 2q^2.
how to deal with the question of working capital - use of excess production facilities and building space?
If the price of good A decreases by 5% and the quantity demanded of good B increases 10.2%, find the cross price elasticity of demand. Are the goods substitutes or complements? Why?
The difference between the comparative advantage theory and the factor proportions theory is that the factor proportions theory? ________.
Suppose that a manufacturer is a monopolist in selling some product to a number of competitive retailers at wholesale price w. The manufacturer has marginal cost of $10 per unit. Each retailer pays w to the manufacturer and charges p for each unit it..
Assume that the demand for plastic surgery price is inelastic. Are the following statements true or false? Explain your answer
Assume that a consumer can buy only two goods, A and B, and has an income of $100. The price of A is $10 and the price of B is $20. Illustrate what is the slope of the budget line if A is measured horizontally and B is measured vertically.
You purchased a bond for 9500 dollars. The bond matured in 4 years and you sold it for 111,000 dollars. The par value (face value) of the bond was 10000 dollars. Interest payments were made every 6 months. The personal rate of return you received (so..
Union membership has been declining in the U.S. private sector for many years. What do you think are the major reasons for this? Why isn't this true for the public sector? Describe the actions that an employer may take when a union attempts to organi..
a. What is the market equilibrium price and quantity? Sketch your answer as well as calculate it numerically.
Suppose that, in the long run, a pizza firm’s variable costs are V C(Q) = Q2/2 (where Q is the number of pizzas produced each day), its marginal cost is MC(Q) = Q, and there is an avoidable fixed cost of $50 per day. In the long run, there is free en..
It takes Betty 4 h to bake a cake and 2 h to knit a sweater. What is her opportunity cost of 1 cake in terms of knitted sweaters?
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