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Jasmine’s Snack Shop sells two brands of potato chips. She produces them by buying them from a wholesale supplier. Brand X costs Jasmine’s $1.00 a bag, and Brand Y costs her $1.40 a bag. Draw Jasmine’s production possibilities frontier if she has $280 budgeted to spend on the purchase of potato chips from the wholesaler. Why is it not “bowed out”?
Is the plan simple and succinct? Is it easy to understand and act on? Does it communicate its content clearly and practically? Is it not unnecessarily long? Is the plan realistic? Are the sales goals, expense budgets, and milestone dates realistic?..
The four fundamental factors that affect the supply of and demand for investment capital – which affect interest rates – are investment opportunities, time preferences for consumption, risk, and inflation. Explain how each of these factors affects th..
The price index in the first year is 125, in the second year is 150, and in the third year is 200. What is the inflation rate between the first and second year and between the second and third year?
Suppose you have three people who are suggesting three social welfare functions for a society of five persons. Person 1 suggests the sum of the utility of each individual (U1+U2+U3+U4+U5). Person 2 suggests using the minimum utility of each individua..
Conduct original research on an American Economic History event that occurred between 1900 - 1960. (you cannot do the Great Depression or Prohibition) . I chose The Great Mississippi Flood of 1927, but my professor said " Your topic on the Mississipp..
A multiplex movie theater estimates the week-end demand for afternoon shows to be D(p) = 1000-80p and the demand for evening shows to be D(p) = 1000-50p. The maximum seating capacity of the theater is 550 and the marginal cost is zero (e.g., variable..
If market participants expect higher inflation in the future, the quantity of loanable funds demanded will increase. This will cause a movement along the demand function for loanable funds. If credit risk increases, supply of loanable funds will shif..
The shape of Russia’s production possibilities frontier (PPF) should reflect the fact that as Russia produces more camcorders and fewer cars, the opportunity cost of producing each additional camcorder
Consider the following game. Firm 1, the leader, selects an output q1, after which firm 2, the follower, observes the choice of q1 and then selects its own output q2. The resulting price is one satisfying the industry demand curve P = 200 − q1 − q2. ..
The typical right wing/free market argument that leads to privatisation of government assets is that the government assets will be far more efficiently managed when in the hands of profit seeking capitalists, rather than being owned by the government..
How might increasing the level of government transfers reduce the size of the economic pie? Check all that apply. Greater transfer activity diverts productive resources into rent-seeking activity. Higher taxes may be necessary to finance increased tr..
Analyze a two-period model for the market of computers in which two firms operate. Firm 1 only produces in period 1 and is endowed with an old technology providing a quality level vO to consumers.
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