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Assume ESPN introduces a new performance comparison system for NBA players (basketball), i.e. preference relation for ranking players as strictly better, weakly better or indifferent (equally good). ESPN’s new criterion (the preference relation) is defined as: “better defender and better 3-point shooter". Please analyze which of the three axioms (completeness, reflexiveness and transitivity) does the ESPN’s new preference relation satisfies.
Abe’s marginal utility of apples is 12 and his marginal utility of bananas is 5. If apples cost $2 each and bananas cost $1 each, is Ape consuming at an optimum? If not, which fruit should Ape consumes more of?
Explain how it is that in international trade countries with high wages, such as Germany and the US, are able to compete against countries where wages are lower, such as China and Bangladesh.
The rate of growth in the US economy is currently 0.5% annually. Your mission is to increase our growth rate to at least 4% annually, without setting off unacceptable levels of inflation. You have the tools of fiscal and monetary policy available. **..
When the Fed purchases government securities ________ loans end up being made because ________.
Public health information can be broadcast at a cost of $100. Public health information is a pure public good, in that many people can use the information simultaneously and preventing people from using the information is very difficult. One group of..
Antitrust authorities at the Federal Trade Commission are reviewing your company’s recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power. A hearing is scheduled for your..
A monopoly firm faces a demand curve given by P = 80 – Q and has a cost curve given by TC = 0.6Q^2. Specify and demonstrate its optimal output, price, and profits. Now suppose a specific tax of $16 per unit produced is imposed upon this firm; specify..
Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm. Describe the busi..
If the government faces an AD Shortfall of 100 billion dollars and finds that the marginal propensity to consume is 0.8, elucidate what will be the desired fiscal stimulus.
Use the classical theory of distribution to predict the impact on the real wage and the real rental price of capital of each of the following events. A technological advancement improve the production function
In which of the following would cooperation be most likely to work in a repeated? prisoners' dilemma? game?
Illustrate what does your organization or an organization with which you are familiar consider opportunity costs when evaluating strategic opportunities.
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