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Kelli likes to bake cookies and doesn't care whether she uses corn or safflower oil in her recipes. To her: they provide the same function and the same taste in her cakes and cookies. What do Kelli's indifference curves look like for corn oil and safflower oil? What is her tangency condition when it comes to finding the utility maximizing bundle?
When prices are ($4, $2), Valerie chooses the bundle (9, 18), and when prices are ($1, $2), she chooses the bundle (8, 14). Is Valerie's choice of bundles consistent with the Weak Axiom of Revealed Preference.
John intends to invest a certain sum of money today in order to earn a return of $6 000 in five years time. how much should john invest today at the interest rate of 7%, compounded annually?
J&M Company is a real-estate developer considering a 40-unit apartment complex in a growing college town. As the area is also booming with foreign automakers locating their U.S. assembly plants the firm expects that the apartment complex, once built,..
Why is economics considered a social science? What role does economics play in your personal and professional lives?
Industry studies often suggest that firms may have long-run average cost curves that show some output range over which there are economies of scale and a wide range of output over which long-run average cost is constant; finally, at very high output,..
q1. dynamic rather than static demand and supply conditions are typically observed in markets of real world. hence
By paying a higher-than-market wage, a firm can avoid the problem of:
Case Study - Technology and Economic Change and what are the causes of economic growth in potential output in the long-term? Apply the theory to illustrate and explain your answer with an example.
Recently, the House of Representatives passed legislation to increase the minimum wage in the nation from $5.15 to $7.50. What are the pros and cons of this proposal? Provide an analysis based on the demand and supply of labor.
A company planning to borrow $9.0 million for a plant expansion is not sure what the interest rate will be when it applies for the loan. The rate could be as low as 8% per year or as high as 10.2% per year. The company will move forward with the proj..
A company's cash sales for the month are $200,000 and its accounts receivable payments for the month are $100,000. What is its total incoming cash flow.
This question uses the general monetary model, where L is no longer assumed constant.
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