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suppose that early in a year, hurricane hots a town in Florida and destroys a substantial number of homes. A portion of this stock of housing, which had a market value of $100 million (not including the market value of the land), was uninsured . the owners of the residence spent a total of $5 million during the rest of the year to pay salvage companies to help them save remaning belongings. A small percentage of uninsured owners had sufficient resources to spend a total of $15 million during the year to pay construction companies to rebuild their homes. some were able to devote their own time, the opportunity cost of which was valued at $3million, to work on rebuilding their homes. The remaning people however, chose to sell their land at its market value the combined effect of theses houses. what was the combined effect of theses transactions on GDP for this year? (hint: which transaction took place in the market for final goods and servies?) in what ways , if any does the effect on GDP reflect a loss in welfare for theses individuals?
Illustrtae what are the nominal rates of interest for both the United States and the euro area?
You have calculated the expected NPV of project A to be $3,758 and that of project B to be $3,114. Can you be certain that you should recommend to your management to implement project A.
Create a graph that shows Price on the Y-axis and Q demanded and Q Demanded and Q supplied on the X-axis.
Suppose that a firm maximizes its total profits and has a marginal cost (MC) of production of $8 and the price elasticity of demand for the product it sells is -3. Find the price at which the firm sells the product.
Describe what will happen in this market as it moves to a new equilibrium. If a hard freeze eliminates Brazil's premium coffee crop, what will happen to the price of premium coffee?
The monopolist has a constant marginal and average total cost of $50 per unit. Find the monopolist’s profit – maximizing output and price.
Assume the new leadership in Congress decides to repeal some of the tax breaks granted to large businesses throughout the past several years. What impact will the repeal have on the exporting of jobs to foreign countries? describe by using isoquant ..
A country has the per-worker production function, y=5k^1/2, where y is the output per worker and k is the capital- labor ratio. The depreciation rate is 0.15 and the population growth rate is 0.05. The saving function s=0.2Y wh..
what distinguishes public good from private goods what happens to total revenue given a price increase and demand is inelastic Why What is the difference b/w economic and accounting profit Why is a difference b/w them important
Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end ..
Compute and contrast the international financial organizations that play major roles in NAFTA and Latin-American Integration Association
The ten firms have banded together to form a cartel, and the cartel sets the monopoly price. The cartel agreement limits each firm to an output of one-tenth of the total amount demanded at the cartel price.
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