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Candice can make 5 units of food per day if she devotes all of her time to food production. She can make 10 units of clothing if she spends the whole day at clothing production. If she divides his time between the 2 activities, her output of each good will be proportional to the time spent on each. The corresponding figures for Friday are 10 units of food and 15 unite of clothing. Describe the production possibilities frontier for their economy. If Candice and Friday both regard food and clothing as perfect substitutes, what should each produce?
Now suppose a trading ship visits the island each day and offers to buy or sell food and clothing at price ratio Pf/Pc =4. How if at all, will the presence of this ship alter the production and consumption decisions of Candice and Friday?
If Jones sells the equipment today for $180,000 and its tax rate is 35%, what is the after-tax cash flow from selling it.
What is the particular form of money (M1,M2, etc.) that would be the smallest measure that includes the type of money described in the article. (For example, if the article is about cash, write "M1." Although all other forms of money include cash, M1..
A shareholders' group, in lodging a protest, claimed that the mean tenure for a chief executive office was at least nine years. A survey of companies reported in the Wall Street Journal found a sample mean tenure time of 7.27 years with a standard de..
If Robinson Crusoe can, either shoot 5-wild geese or catch 15-fish, on average, for every hour of labour effort. i.e. opportunity cost of shooting one wild goose is three fish.
Why might price collusion occur in oligopolistic companies. Evaluate the economic desirability of collusive pricing.
4.5 Grocery store chain often set consumer-specific price by issuing frequent –buyer cards to willing customers and collecting information about their purchases. Grocery chains can use that data to offer customized discount coupons to individuals. Wh..
You have been provided with an Access database that contains sales data from a small bakery. The data has information about the client, bread type, cost to produce the bread and sales. You have been tasked to provide a few reports. Provide and descri..
Write out the payoff matrix for this game, and then find its Nash equilibrium.
Analyze the role of credit in our economy and how it influences the business cycle. In your answer, explain how the role of credit leads to the stability of our economy.
Explain when Bank of Maryland will exercise the option. What is Bank of Maryland's break-even 60-day spot price on the option contracts? On the futures contracts.
What would happen if suppliers charge less than the equilibrium price for your good or service.
what actions would you take to test the hypothesis. Following your test illustrate what actions would you take if the hypothesis must be rejected given the outcome of the test.
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