5. Assuming that net investment at time t is given by I(t)-4to078, find the change in...
6. The demand function for a good supplied by a monopolistis: (500-P)/p=x, 0<p<500 The cost of producing x units of output is 2x, for all x20. Show that the monopolist's profit may be expressed as a concave function of output, and find the output and price that maximize profit.
This is a question in Macroeconomics about Solow Model
Consider an economy in discrete time t = 0,1,2,3,... Y denotes total output, C denotes total consumption, and S denotes total savings. At any period, total output is split between consumption and saving, i.e. Y() = C(t) + s(t) The economy is closed so that aggregate saving equals aggregate investment, S(t) = 1(t). Investment augments the national capital stock K and replaces that part of it which is wearing out. Suppose...
9. A particle moves along the x-axis so that its velocity v at time t, for0 sts 5, is given by v(t) In(t2-3t +3). The particle is at position x 8 at time t 0. a) Find the acceleration of the particle at time t 4. b) Find all times t in the open interval 0<t <5 at which the particle changes direction. During which time intervals, for 0st s 5, does the particle travel to the left? c) Find...
Consider an unincorporated firm with a two period (1 and 2) time horizon. At the beginning of period 1, the firm has a predetermined capital stock, K1 . During period 1, gross investment expenditure, I, financed out of retained earnings, are incurred with the purpose of both maintaining and increasing the capital stock in period 2. In each of the two periods, the capital stock depreciates at a rate δ, so at the beginning of period 2, the firm's capital...
1) Solve the problem. 1) The resale value of a certain industrial machine decreases over a 10-year period at a rate that changes with time. When the machine is x years old, the rate at which its value is changing is 280(x - 10) dollars per year. By how much does the machine depreciate during the fourth year? A) A decrease of $1540 B) A decrease of $1820 C) A decrease of $8960 D) A decrease of $1680 The slope...
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5. Given C 5000.75 (Y T) I = 2,000 -50r G 1,000 T 1,000 - 10Y - 2000r Ms 50,000 P a. Derive the IS curve and the LM curve, and find the equilibrium interest rate and output b. Government spending increases by 500. If the central bank does not react at all to this change, what is the new equilibrium output and interest rate? If instead the central bank wants to keep...
Just 5-8
1 Analytics of the Solow Model In the Solow economy, people consume a good that firms produce with technology Y (which we assume to be constant) and f is a Cobb-Douglas production function Af (K, L), where A is TFP f(K, L) KL-a Here K is the stock of capital, which depreciates at rate δ E (0, 1) per period, and L is the labor force, which grows exogenously at rate n > 0. Here employment is always...
1. Consumer’s utility function is: U (X,Y) = 10X + Y. Consumer’s income M is 40 euros, the price per unit of good X (i.e. Px ) is 5 euros and the price per unit of good Y (i.e. Py) is 1 euro. a) What is the marginal utility of good X (MUx) for the consumer? ( Answer: MUx = 10) b) What is the marginal utility of good Y (MUy) for the consumer? ( Answer: MUy = 1) c)...
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Module 5 Student Version 4/4/96 Financial Statements for the Year Ended December 31, 1995 (Millions) ACE REPAIR, INC. Cost of Capital (Easy ERSION Cash & Sec. A/R Inventory $5.0 46.3 74.1 A/P Accruals N/P $39.0 14.7 35.5 This case illustrates the cost of capital estimation process. It demonstrates (1) the mechanics of determining the component costs of capital--specifically debt, preferred stock and common equity, (2) the effects of changes...
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Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...