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Sam’s utility function is U(x1, x2) = 2x1 + x2, where x1 is the number of units of good 1 he consumes per week and x2 is the number of units of good 2 he consumes per week. Sam has $200 a week to spend. The price of x1 is $4. Sam currently doesn’t consume good 2, as it is way too expensive. Sam has received an invitation to join a club devoted to the consumption of good 2. If he joins the club, Sam can get a discount on the purchase of good 2. If he belonged to the club, he could buy good 2 for $1 a unit. How much is the most Sam would be willing to pay to join this club?
Suppose Katie, Kendra, and Kristen each purchase a particular type of cell phone at a price of $80. Kate's willingness to pay was $100, Kendra's willingness to pay was $95, and Kristen's willingness to pay was $80. For the three individuals together,..
What is the programmed management approach in international marketing and advertising? How are Kraft Heinz, P&G, Nestle and Starbucks are handing this?
If Clancy buys a coupon to pays when Sullivan wins Illustrate what is the induced lottery to he faces. Illustrate what is its expected value.
Having worked for many of the firms in the petroleum industry, you know that the price elasticity of demand for a representative firm is about −1.25. An industry publication recently reported that the Rothschild index for the petroleum industry is es..
The Law of Demand states that the demand for a product is inversely related to the cost of such product.
A college graduate with a B.S. in Mechanical Engineering expects to earn, on average, $20,000 per year more than an engineer without a B.S. degree. what MARR does the investment represent? Is it a high or low rate of return compared to, say a student..
Wilson is offered a job in Kansas City that pays $50,000 and a job in Dallas that pays $60,000. Which pair of CPIs would ensure that the two salaries have the same purchasing power?
What if the monopolist charged P= $5.50 for the first 3 units of the commodity and P= $4 for the next 3 units What type of price discriminiation is this?
Explain why do you think maximising sustainable yield is often suggested as the appropriate goal of fishery.
A committee of 4 has to be chosen from 12 representatives, of whom 8 are men and 4 are women. If selection is random what is the probability that.
How would a gradual increase in the percentage of fathers who stay home to care for young children while their wives continue working.
Joy Land Toys, a toy manufacturer, is experiencing quality problems on its assembly line. How many inspectors should the firm hire?
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