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Find the optimal level of x and y if U(x,y)=10z+5y x,y>0, and Px=3, Py=1 and I=30. Describe the relationship between x and y.
If the price of y doubles, will the consumer change their choice? If so, find the new values of x and y.
Please provide a mathematical explanation NOT a graphical one.
Calculate the ICER for the new treatment, assuming that the new treatment would replace the old one. In what quadrant is the ICER located in Figure 3-4? Is cost effectiveness analysis relevant? How does the answer change if the cost of the new treatm..
A few questions in this problem set are based on the comments made by James Love to Congress regarding antitrust policy and the Petroleum industry. These are found at the end of the module on Antitrust Policy. What is it about the petroleum industry ..
Consider a perfectly competitive industry in which the inverse demand is given by p(y)=2001-2y and each firm has the following cost function : c (y)=(1/3)y^3+18 for y>0, c(y)=0 for y=0., In the long-run equilibrium, what price will be charged for the..
The theory of purchasing power parity say-The real exchange rate is always greater than one-The real exchange rate is always less than one
In which market will a company arrange to receive currency for a transaction at a future date? The forward market, the currency futures market, the arbitrage market, the forward spot market.
The Australian government is concerned about inter-generational equity problems. Key problems arise from a larger number of older retired people being supported by a smaller workforce of young people, and from ever increasing budget deficits to be pa..
Calculate the firm’s maximized profit, and the revenue and cost that produce that profit. (h) Calculate the elasticity of demand at the profit-maximizing point. (i) What is the firm’s markup at the profit-maximizing point? Confirm that this markup ha..
4,000,000 stems were sold that week. During the week of June 5-11, the rose market cleared at a price of $0.20 per stem and 3,800,000 roses were sold. From this information what would you conclude about the price elasticity of supply in the rose ..
q1. suppose demand and supply are given by qd 7-12px and qs14p-12determine the equilibrium price and quantitysuppose a
Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2012.
Suppose that the economy improves and the crime rate in West Philadelphia drops, so that the marginal product and average product of a group of 100 police offers is now 55 arrests per hour for any number of police officers. What is the optimal alloca..
Explain how does your graph relate to the other two graphs. What do any of these graphs have to do with price discrimination.
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