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Indifference theory can explain all rational choices and behavior.
Try the theoryout on this situation. Suppose the only consideration for couples to have a bby or not was money. If a baby costs $8,000 a year, the price of "All other goods" is $1, and the couple has an annual income of $40,000, how would I construct a budget line for having a family?
Recently, Pfizer and Warner-Lambert agreed to a ninety billion dollar merger, thus creating one of the world's biggest pharmaceutical firms. Pharmaceutical firms tend to expend a greater percentage (%) of sales on R&D activities than other industries..
Why has the global capital market grown so rapidly recently? Do you expect it to continue to grow and what are the risks that might be associated with investing in the Global Capital Market?
Consider the preferred prices of the authors and publishers of the electronic book, whose marginal cost of production is close to zero? Would the two disagree regarding the price to be charged for book?
Assume Labor is the Variable Input. Capital and Land are the inputs which requires the longest time period before they can be adjusted. Explain the movement of the resources in both SHORT RUN and LONG RUN
Calculate the elasticity of demand and elasticity of supply at each price change in the market for financial calculators
For many years, your company has been protected through patents, Technological change and introduction of new products have been slow.
You're the manager of monopoly. A typical consumer's inverse demand function for your firm's product is P=100-2Q and your cost function is C(Q)=20Q. Find out the optimal two part pricing strategy.
Neilsen Media Research wishes to pretest a questionnaire to be mailed to many thousand spectators. One question involves the ranking of male and female college students
HoneyBee Farms, a medium size manufacturer of honey, operates in market that fits competitive market definition relatively well.
The WSJ recently reported that Juniper Networks plans to offer its more than 1000 employees opportunity to reprice their stock options.
Mankiw discusses that if federal authorities suppose responsibility, entire financial system might well become a group of government sponsored enterprises.
Write down the equation that describes the firms optimal choice of capital and labor. Show that a combination of inputs such that K=2L is optimal
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