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After getting an A on your economics exam, you decide to go to your favourite Mexican restaurant to celebrate. You are having trouble deciding whether to order the chipotle chicken chimichanga or the cilantro seafood enchiladas. Use the rule of equal marginal utility per dollar to determine which one to purchase: (a) the chimichanga for $8 which gives you 120 units of utility, or (b) the enchiladas for $15 which gives you 195 units of utility?
There are two identical firms in this economy with constant marginal costs equal to 1 and no fixed costs. Assume that firms set prices and follow a Bertrand model to do so.
Suppose the own price elasticity of demand for good X is -3, its income elasticity is -2, its advertising elasticity is 3, and the cross-price elasticity of demand between it and good Y is -5. Determine how much the consumption of this good will chan..
Explain how can tax cuts help revive the economy.
If American cheese also cheddar cheese are substitute afterward which of the following would increase the demand for cheddar cheese.
Compute the real GDP per person for this nation in 2001, in 2000 euros per person. Round your answer to the nearest euro.
If the nominal exchange rate were 1.2 Canadian dollars per U. S. dollar, illustrate what would be the real exchange rate.
Menu costs arise from the way inflation: Unit-of-account costs arise from the way inflation makes... Shoe-leather costs arise from the way inflation..
What is the marginal product of the second employee. What is the marginal revenue product of the fourth worker.
Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage.
Use a supply-demand graph to demonstrate how the quantity and price of medical services are expected to be affected if we went from a world without insurance to a world where the government covered 90% of all medical costs. Assuming that prices are s..
Boss Fuzzhead is an engineer by training and says “I know that we can substitute capital for unskilled labor in the production process that our company uses and projections are that capital costs are declining, so those unskilled folks better just be..
The Following table shows the regression coefficient (B) and the t-statistics (T) for the variables influencing business traveler demand for hotel rooms (including hotel prices and attributes) from the study.Which characteristics are most and least..
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