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Bernice’s preferences can be represented by the utility function, U(x, y) = min{x, y}. She faces prices ($2, $1), and her income is $12. If prices change to ($3, $1), the compensating variation
A) equals the equivalent variation.
B) is $2 greater than the equivalent variation.
C) is $2 smaller than the equivalent variation.
D) is $1 greater than the equivalent variation.
E) There is not enough information to determine which variation is larger.
If a central bank intervenes in the foreign-exchange markets and buys foreign currencies:
The manager of a canned food processing plant is trying to decide between two labelingmachines. Determine which should be selected on the basis of rate of return with a MARR of 20%per year.
The minimum wage in California is currently $9.00 per hour. Suppose that in the market for unskilled labor, there is a surplus of labor at that price because the $9.00/hour is higher than the equilibrium wage. using a supply and demand graph, illustr..
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The marginal cost to X Co. of supplying an additional tractor to a customer is $300. X Co. sues Mr. Y for breach of contract. How much damages should be awarded to X Co
q.country economic analysis report country for indiacollect the following data for the most recent year available1
An economy produces 2 goods soda a beer. Fully explain why the marginal cost function in the beer industry derives from the marginal benefits of the soda that is given up when beer is produced.
What are the pros and cons of the Economic Stimulus Bill (The American Recovery and reinvestment act of 2009). Provide your arguments and defence for a method to jump start the U.S. economy in a time of recession.
A private-equity company is confident that by terminating Russell's money losing fruit-flavored beer coolers and by selling the women's hosiery division free cash flow can be increased $4 million annually for the next decade. Assuming these actions d..
Currently, the expectation is that the Federal Reserve will try to increase interest rates sometime later this year, while the European Central Bank will try to maintain low interest rates. What is the corresponding expectation of the future trajecto..
1. Draw graphs showing a perfectly competitive firm and industry in long run equilibrium.
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