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Q. You have the option of renting a car on a daily basis for $40/day or on a weekly basis for $200/wk. draw your budget constraint for a budget of $360/trip.
a. Find out your best affordable bundle if your travel preferences are such that you require exactly $140 worth of other goods for each day of rental car consumption.
b. Alternatively, Assume you view a day of rental car consumption as a perfect substitute for $35 worth of other goods.
A firm in a perfectly competitive market invents a new method of production which lowers its marginal costs. Illustrate what happens to its output.
The municipal swimming pool charges lower entrance fees to local residents than to non-residents. Conclude that non-residents must have for swimming at the pool than residents.
Suppose that the nominal rate of interest is holding steady at 8 percent even as the anticipated rate of inflation rises.
Elucidate how much money should the government spend to eliminate this gap. Elucidate how much money should the government give in tax cut to eliminate this gap.
A local community voting to raise property taxes to increase school expenditures
Propose how it can conclude the efficient levels of information in an organization to justify taking risk over uncertainty.
calculate the price elasticity of demand for each product and compare with your teammates' elasticities.
Producing nations outside the organization, like Britain and Norway, should do their share and cut production.
Outline reasons why the marginal revenue product differs between workers in different jobs.
At this level of pollution, what is the marginal cost of pollution control.
Calculate the amount of former foreign monopoly profit that is transferred as tariff revenue to the home country when the home country imposes the tariff.
At some levels of output Acme's average total costs are less than Generic's, but at some levels of output Generic's average costs are less than Acme's.
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