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When real estate agents sell their own, rather than clients’, houses, they leave the houses on the market for a longer time (10 days longer on average) and wind up with better prices (2% higher on average). Why?
For the production function q= k^0.25 l^0.25. Find total cost function C(w,r;q). Show that it is homogeneous of degree one in input prices and explain the intuition behind this property. Find the profit function?(w,r,p). Show that it is homogeneous o..
Write down the budget constraint of the representative consumer and Write down the maximization problem of the representative consumer and find labor supply
A firm’s total cost and marginal cost functions are TC = 10 Q2 + 2 Q – 2 ; MC = 20 Q + 2. Asuming that the market price is 42 and that the marginal revenue (MR) is also 42 (it is constant at all output levels), how much output will this firm sell (pr..
Elucidate how the central bank manages a nation's monetary system. Outline the stated direction of recent monetary policy in the United States.
Are these options likely sufficient to conclude that even if all theaters in a city are owned by one firm, that that firm will not be a monopolist? Under what circumstances will film have very little market power?
Because the U.S. postal service is a monopoly and Congress sets postal prices through legislation, market forces do not determine stamp prices. New York City government auctions taxi medallions that give the right to transport passengers by taxi. Bec..
Consider the following facts. After the age of 25, persons with college degrees earn more than persons with no education beyond their high school degrees, ceteris paribus. Moreover, persons with high school degrees earn the same as persons who have h..
What do temporary changes in the tax code do for incentives? Does this encourage long term planning? Should the government encourage long term planning? Should the Government use tax policy to change behavior?
Suppose that the opportunity-cost ratio for watches and cheese is 1C ? 1W in Switzerland but 1C ? 4W in Japan. At which of the following international exchange ratios (terms of trade) will Switzerland and Japan be willing to specialize and engage in ..
What is the expected rate of depreciation in the Korean won relative to the Japanese yen
If the central bank (such as the fed in the us) of a country is steadily losing their foreign exchange reserves under a fixed exchange rates, then probably
U.S. policy to increase the miles per gallon (mpg) of new cars is to mandate an average mpg for cars sold by U.S. manufacturers. In many countries within the European Union, the policy is to tax gasoline so that the price per gallon at the pump is st..
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