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1). What are the two main investor preferences, and how do they conflict?
2). Why does competition force firms to use the least-cost, most-efficient productive techniques?
Compute the MRS of other goods for airline miles; i.e., the MRS that represents the slope of the indifference curves when x1 is on the horizontal and x2 is on the vertical axis.
Explain the specific business decision that management made after computing this value. Analyze how management used the concept of the time value of money principles to make this decision.
Government sometimes provide subsidies to specific industries; that is, they reduce a domestic firms cost so that it can sell products on the international market at a lower price. What reasons do governments use for these government subsidies?
Professor Grubert of MIT points out that nearly half of federal government spending is on social insurance programs, like social security, Medicare and Medicaid, Supplemental Nutrition Assistance Program or food stamps, the Earned Income Tax Credit, ..
Gary has two children, Kevin and Dora. Each one consumes "yummiest" and nothing else. Gary loves both children equally.
The management of a local restaurant wants to determine the average monthly amount spent by households in restaurants. Some households in the target market do not spend anything at all, whereas other households spend as much as $300 per month. What s..
The first cash flow of a 25-year series of quarterly cash flows is equal to $35,000. Each cash flow in the series increases by $800. Find the amount of each cash flow in an equal quarterly cash flow series that is equivalent to the increasing cash fl..
Three men claim to be the fastest gun in the West. To see who is right, they agree to meet at a desolate location in a desert. On a circular, cobblestoned area that is roughly 50 yards in diameter, each stands at the perimeter such that each man is e..
A 10-year project is evaluated under two scenarios: (i) with inflation, and (ii) without inflation. Without inflation under 10% interest rate its present worth is $21,851. If annual inflation of 2% is assumed, then the project's present worth becomes..
A consumer has income of $500. chips costs $2 , and burger costs $6. Draw his budget constraint (put burger on the horizontal axis). What is the slope of her budget constraint? Draw Consumer’s indifference curves for chips and burger if you love chip..
Why is a point below the production possibilities curve less efficient than a point on that curve?
Suppose that the government imposed a $1 tax each time someone used an ATM. How would this tax affect output and the price level in the short and long run?
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