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Suppose that you want to maximize the value of the function f(x) = 8x^2 - x4.
(a) Which value(s) of x satisfy the first-order condition for this maximization problem?
(b) Which value(s) of x are boundary points?
(c) Which value(s) of x solve the maximization problem?
(d) What is the maximized value of the function?
Commercial bakeries typically sell a variety of products (breads, rolls, muffins, cakes, etc.) to local grocery stores. There are substantial economies of scale in production of each one of the bakery products, which makes it cost-effective to specia..
q. an economy has the following consumption functionc200 0.8 dithe government budget is balanced with government
The purchase of copy paper by Intel for the company staff. The purchase of an electronic handheld organizer by a sales manager to keep track of clients. The purchase of a new aircraft carrier by the Navy
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Walmarts decision in 1994 to continue operating stores in specific cities in Mexico when other firms were pulling out would be classified as
Now suppose that management believes the probability of weak demand in 2009 is 25% and the probability of strong demand is 75%. Using mean-variance analysis, explain which level of output should be chosen.
Suppose the one-year interest rate on Swiss France is 10% and the US Dollar interest rate is 12% and the current $/SF spot rate is 0.8. What do you expect the 12-month forward rate by using the interest rate parity? Suppose the actual 12-month forwar..
If the government wanted to achieve the same change in GDP as in part 8 by cutting taxes instead of increasing spending, how large would the tax cut need to be.
Southwestern Moving and Storage (SMS) buy a large-capacity trailer truck for $115,000 to provide short-haul earth moving services. SMS is planning selling the truck in seven years for a price of $45,000. Construct the cash flow diagram. Calculate the..
Which of the following is not a valid point in debating the merits of increasing government expenditures or cutting taxes during a recession?
Describe the cost function and explain the difference between a short-run and a long-run cost function. Describe the elements of a cost schedule which can be derived total, fixed, and variable costs. Compare and contrast the short-run cost function a..
Define and explain the relationship between total utility, marginal utility, and the law of diminishing marginal utility. Describe how rational consumers maximize utility using the utility maximization rule.
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