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With respect to three goods- ice cream, green tea, and digital cameras, what does it mean when your preference for, and satisfaction gained from, these three goods are consistent with the assumptions of completeness, transitivity, and (What I call) the “pig theory” demand.
1) Sean and Samantha are in consumer equilibrium. CDs (on the “X” axis) cost 60 dollars each and cassette tapes only 15 dollars each. Samantha consumes CSs and cassettes. Sean consumes only cassettes.
o What can you infer about Seans MRS (marginal rate of substitution) of CDs and tapes? Explain.
o What about Samanthas MRS? Explain.
Fran who is in the 35% tax bracket, recently collected $100,000 on a life insurance policy she carried for her father. She currently owes $120,000 on her personal residence and $120,000 on business property. What would be the tax consequences of each..
Draw a graph of a market for a firm in a perfectly competitive industry. Indicate the short run profit maximizing quantity and the profits for the firm.
The management of the Mini Mill Steel Company estimated the subsequent elasticities for a unique type of steel.
Does the factor proportions theory shed any light on Mexican migration to the Unites States? How does it account for US direct investment in Canada?
Find aggregate output (Y) and the rate of interest (i) in this economy. Is the government's budget balanced, in surplus or deficit? If full-employment output is 830 and the Fed increases the money supply from 150 to 160, will economy achieve equilibr..
Why are many online service markets likely to be perfectly competitive? Recently, competitors of Plug and Play have been opening their own shared- workspace centers. Does the market for shared workspace likely possess characteristics of a perfectly c..
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3581 per year, paid at the beginning of each year, in which case maintenance is provide. What is the most she should pay f..
If the U.S. interest rate, adjusted for people's expectation of inflation, increases sharply relative to the rest of the world, then
Find out the contingent demand function for labor and capital and the corresponding total cost function. Find the long-run average cost and the long-run marginal cost of both inputs.
A tractor costs $19,195 and will be used for 5 years, at which time its estimated salvage value will be $4,000. Maintenance costs are estimated to be $100 for the first year, increasing by $100 each year thereafter. If i=12%, calculate the equivalent..
Within the next year? Over the long term. Elucidate what resources does he have at his disposal to enhance the reputation of the firm and turn it round.
An energy manager expects a need for a boiler that costs $150,000 in about seven years. How much money should the manager save each year to have enough money for the purchase in seven years time if the interest rate is (a) 10% and (b) 3%.
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