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A price floor is introduced on a market and creates a deadweight loss. Knowing the market demand curve is P = 100 − 3Q and the market supply curve is P = 20 + Q, find the price floor that will result in a deadweight loss of DWL = 200/9 . (P^f = 50)
Business Economics, Economics
Each of 30 teams in a league has a demand for generic advertising of Q = 260 - 4P. Price is measured in thousands of dollars. Ads cost $510,000 each. How many ads will the teams want to purchase as a group?
Suppose there is no inflation and an insurance company offers a contract that would pay $500,000 with certainty 50 years from now. What is the most that this contract would be worth today if: 1. The rate of interest is 7 ...
A firm is considering the two mutually exclusive investments projects. Project Alpha requires an initial outlay of $600 and will return $160 per year for the next seven years; Project Beta requires an initial outlay of $ ...
Determine the sample size needed to construct a 90?% confidence interval to estimate the average GPA for the student population at a college with a margin of error equal to 0.5. Assume the standard deviation of the GPA f ...
a. Suppose that, for a given year, national saving in a country (an open economy) equals 100, private consumption equals 50, and government consumption equals 20. What is the level of output in this country in this year? ...
In a survey of 400 adults that say traffic is a problem: East reported 36% is a problem, South 33% problem, Midwest 26% problem and West 55% problem. (a) The 95% confidence interval for the proportion from the West say ...
Consider a firm that faces the following expected future marginal product of capital: MPKf =1000- 2K Where MPKf is the expected future marginal product of capital and K is the capital stock. The price of capital, pk, is ...
You are correct that the more financial leverage a business has the more risky it becomes. Can you point out why this is true for a business?
Four balls are independently projected onto one target, the probability of a hit for each is P1 = 0.1 , P2 = 0.2 , P3 = 0.3 , P4 = 0.4. What are the probabilities P04, P14, P24, P34, P44 that zero, one (1), two (2), thre ...
Model this situation using a game table. Hawk and Dove: Two animals are fighting over some prey. Each can be passive or aggressive. Each prefers to be aggressive if the other is passive, and passive if the other is agg ...
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