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Suppose both Smith and Jones utility functions of U(X,Y) = XY1/2. Smith is endowed with (X, Y) = (9,25) and Jones is endowed with (X, Y) = (25,9).
Draw an Edgeworth box with indifference curves through this endowment.
At what combinations of X and Y are both better off (i.e., are Pareto Improving)?
At what combinations of X and Y are there no more gains from trade (i.e., are Pareto Efficient)?
If they agreed on a price of one X for one Y, would they be better off?
The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a year.
The company you work for asks you to recommend whether their Mercedes truck should be replaced now or kept in service for an additional 10 years.
With fewer also fewer barriers to trade, countries are able to focus on producing those goods also services which they are best.
Describe two ways in which greater education opportunities for girls could lead to faster economic growth.
Raw materials cost for part is $150, and value added in manufacturing 1 unit from its components is $300, for a total cost per completed unit of $450. How many units of part are held, on average as pipeline inventory.
Suppose you were provided a gift of a gold mine that generates $1,000 of net income every year, indefinitely. And suppose equilibrium rate of interest is 5 percent. Illustrate what is present value of that gold mine.
Illustrate what is the "incubator effect" that Taiwan's government hoped would emerge in its EPZs.
Assume the current equilibrium price of cheese pizza is $10 also 10 million pizzas are sold every month. After the federal government imposes
some firms leave the industry and the industry returns back to a long-run equilibrium. Illustrate what will be the new equilibrium price, assuming cost conditions in the industry remain constant.
Explain if rewards are tailored towards individual, group, and / or company performance. Explain how you as HR manager will create an incentive pay program that will motivate employees.
Utilize these values at this point on demand to make the subsequent computations.
Further you know that there is a 35% chance for a strong economy and a 50% chance for average growth. What is the expected return on this investment?
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