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Q1. Illustrate what is the marginal revenue from selling another book for the author? Explain how does it compare to the marginal revenue of selling another book for the publisher? Briefly explain.
Q2. Dave has $300 to spend each month on DVDs and CDs. DVDs and CDs both currently have a cost of $10, and Dave is maximizing his utility by buying 20 DVDs and 10 CDs. Assume Dave still has $300 to spend, but the cost of DVDs rises to $12, while the cost of CDs drops to $6. Is Dave better or worse off than he was before the cost change? Use a budget constraint-indifference curve graph to illustrate your answer.
Consider that, in this case, we 1st add (marginal) costs, not quantities, since these are the costs associated with each t-shirt.
Calculate the optimal money growth rate needed for the Fed to hit its inflation target in the long run.
Firms raise capital from investors by issuing shares in the primary markets
Explain why this formulation of consumption may provide a more accurate description of consumption than the simple consumption function that depends only on current income.
Compute the coefficient of variation for each project and Classify the preferred project according to this criterion.
Use the 2007 numbers in the first column to compute, for each of the four countries, the percentage gap between the steady-state ratio.
The biggest difference between Microsoft and software retailers is the market structure in which they operate.
Discuss the policies that Keynes as well as Hayek supported regarding how federal government ought to manage economy. What are differences between each school of thought.
How should labour be allocated between x and y to satisfy the demands calculated in part.
In your opinion, are the resources you devote to your education a form of consumption or a form of investment.
A county is considering using a piece of park land for one of two alternative recreation projects. Project S would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years.
Pretentious that yields for each stock are around generally distributed, with which investment strategy do you have the smallest chance of losing money?
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