Suppose we have two cities: Miami and Atlanta. Individuals expect to live 10 years, face an interest rate of 0% per year. Workers in each city have a yearly labour supply given by h(w)-8 (e. g., workers always work 8 hours a year). Firms face competitive input and output markets and the yearly production technology of firms in each city is f(k, l) - 2vl and firms get $10 per unit produced. Suppose that both Miami and Atlanta have 50 workers and 16 firms. Suppose that there is an immigration wave (in period 1 raising the labour supply of Miami by 50 workers. (a): After the immigration wave in Miami, what will wages in Miami and Atlanta be if people cannot move?
(b): After the immigration wave in Miami, w $1.75 if people face a moving cost of $3 wages in Atlanta be higher or lower than $1.75 if people face a moving cost of $3?

Carver company produces a product which sells for $30. variable manufacturing costs are $15 per unit. fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. a selling commission of 10% of the selling price is paid on each unit sold. the contribution margin per unit is:

You and your new australian bride matilda, are applying for a loan and are required to submit a balance sheet with your net worth. you own a 2008 toyota camry that you bought last month for $9,995. the kelly blue book value for this car is $13,995. you owe $8,150 on the car loan for the camry. you pay off your visa credit card every month and have not paid any credit card interest this year. the current visa credit card balance is $3,522, and the next statement is due in 15 days. you have a student loan balance of $6,500. you presently have $425 in your checking account and $1,540 in your savings account. you own 100 shares of ibm stock that you purchased for $85.50 per share. one share of ibm is now selling for $158.42. you own computers and other electronics that you purchased for $4,100 but could probably sell today on e-bay for $1,800. your gross income is $80,000 per year. what is your current net worth? (see wb ch. 2 example 2.3)

Many potential buyers value high-quality used cars at the full-information market price of € p1 and lemons at € p2. a limited number of potential sellers value high-quality cars at € v1 ≤ p1 and lemons at € v2 ≤ p2. everyone is risk neutral. the share of lemons among all the used cars that might be potentially sold is € θ . suppose that the buyers incur a transaction cost of $200 to purchase a car. this transaction cost is the value of their time to find a car. what is the equilibrium? is it possible that no cars are sold