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Suppose a consumer derives satisfaction from consuming tacos: those from Taco Bell and those from Chipoltle.
a. Graph the budget line of the consumer under the assumption that he is offered a buy three, get one free deal at Taco Bell (limit one free taco).
b. On separate graph, show the same deal if offered by Chipoltle.
c. On a third graph, show the consumer’s budget line of both Taco Bell and Chipoltle are simultaneously offering this deal.
Government says that firm X must pay $1000 in taxes simply because it is in business of producing a good. What cost curves if any does this tax affect and does MC change if TC changes.
demand for labor in China will drive up costs per worker there to $5 per hour. How does this alter the isocost and isoquant graph? d.Given these forecasts, where should you expand production?
how much output should the firm allocate to market 1? Approximately how much output should the firm allocate to market 2? What is the approximate price that will be charged in market 1?
One kind of gain from specialization is that
What are the major economic justifications for state intervention used by mercantilists and what are the major types of problems with state intervention as they pertain to international political economy?
The Rustin Transportation Planning Board estimates the cost of upgrading a 4-mile section of 4-lane highway from public use to toll road to be $41 million now. Resurfacing and other maintenance will cost $820,000 every 4 years. A toll road would requ..
q.consider an economy where there are n consumers each of them having one unit of available time. there is a
Let customer's tastes change so that consumers now demand 100 more units at each price. When the cost of the good is $50, elucidate how many units of the good are demanded?
Jade Larson Antiques owes $20,000 on a truck purchased for use in the business. The company makes principal payments of $5,000 each year plus interest at 8%. Which of the following is true?
How does the adverse selection problem arise in the credit- card market? How do credit- card companies reduce the adverse selection problem that they face? To what complaint does this give rise?
Explain how many histories/game tree nodes are there where P2 has to move? P1.
Xon, a small oil equipment company, purchased a new petroleum drilling rig for $1,800,000. Xon will depreciate it using MACRS depreciation. The drilling rig has been leased to a firm, which will pay Xon $550,000 per year for 8 years.
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