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Suppose you have been accepted by two colleges, A and B.
A is a much more demanding and also a more prestigious institution than B. B is a safe option in the sense that you know you will do reasonably well academically there, and that after graduation you will land an "adequate" job. If you manage to survive academically at A, you will land a "great" job (60% probability); but it is also possible that you will do poorly there, in which case you will end up in a "bad" job (40% probability). The following chart shows the lifetime wealth levels for each type of job and the corresponding probabilities. If your utility function of lifetime wealth , which college should you attend?
Explain when assessing the effects of the budget surplus, list the assumptions you are making.
A has $1.5 million in sales, a Lerner index of 0.57 and a marginal cost of $50. The firm competes against 800 other firms in its relevant market a. What price does this firm charge its customers? b. What is the firm's markup factor? Wh..
Problem based on Utility Function - Problem, Answer and explain the following using a diagram which is completely labeled.
Moreover, she can expect a 5% salary increase each year with this employer. Apply the concept of opportunity cost to calculate the economic cost (as opposed to the accounting cost, which would not factor in opportunity cost) of pursuing the MBA ov..
Assume the forex market equilibrium is given by i = ((i/E) - 1) + .1, where the two foreign return terms on the right are expected depreciation and the foreign interest rate. What is expected exchange rate? Solve for the IS curve: obtain an expres..
You are told to produce a quantity that maximizes profit. How many units do you produce and what is your profit? How many machine and labour hours are used in production?
Fill in the table indicating whether the new Each row and column heading describes a shock to a market initially in equilibrium. Fill in the table indicating whether the new equilibrium price and quantity will increase, decrease, or not change.
The percentage change in the number of trips in central London gives you one of the numbers you need to calculate an estimate of the elasticity of demand. The other number you need is the percentage change in the price a driver pays for driving in..
Derive the marginal cost curve from your answer to (c) and show the relationship between the marginal cost and marginal product of labor.
Suppose the government is concerned that the going wage rate of $6 per hour for low skilled workers is too low.
Find out the marketplace value of output and household saving. What is the relationship of saving and investment.
Illustrate what were the percentage changes in nominal GDP and real GDP for the most recent quarter? What accounts for the difference.
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