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Thomas has income of $1500 today and $1000 tomorrow. He can lend and borrow at an interest rate of 10%. There is 10% inflation. His preferences for inter temporal consumption are represented by the following utility function U(c1; c2) = c1 + c2.
(a) Write down the equation for his inter temporal budget constraint (c1 is his consumption today and c2 is his consumption tomorrow), graph it and label his endowment and the intercepts on each axis. (b) What is his optimal consumption bundle? (c) If interest rates increase to 20%, what will be his new optimal consumption bundle? Is he better or worse off?
In selecting outside advisors, a board, consultants, and the like, what are the most important criteria?
Define the activities a production control department would be responsible for developing a job shop schedule.
Using the assembly-line balancing procedure, what is the required cycle time in minutes per unit if the daily production time is 480 minutes and the required daily output is 50 units?
Suppose a supplier offers an incremental quantity discount for a product. The supplier charges $10 per unit for the first 2,000 units in an order, $9 per unit for the next 2,000 units, and $7 per unit for any additional units in the order. What is th..
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Determine the economic order quantity, the reorder point, total annual cost using the EOQ, if cost per tire is $35.00, holding cost is 20% of tire cost per year, demand is 1000 per year ordering cost is $20.00.
United Air Lines announced its competition to select a town for a new billion-dollar aircraft-repair base. The bidding for the prize of 7,500 jobs paying at least $25 per hour was fast and furious, with Orlando offering $154 million in incentiv..
within a construction company there are estimators who review construction drawings and specifications manuals. upon
Assignment on Leadership Style- How Are Leaders Leading in the 21st Century. Choose the CEO of one of the following organizations for this assignment: Google, Zappos, Southwest Airlines, Hewlett Packard, Xerox, W.L. Gore, DuPont, or Procter & Gamb..
Tom, the marketing director of an automobile manufacturing company, enrolled a new group of trainees in experiential programs based on the responses evoked during a training session. Which of the following responses by the trainees could have resulte..
Clement Bait & Tackle has been buying a chemical water conditioner for its bait (to help keep its baitfish alive) in an optimal fashion using EOQ analysis.
The local hospital’s emergency department has 6 trauma bays. On average, patients requiring a trauma bay arrive every 30 minutes (with a coefficient of variation of 1). If the hospital has an available trauma bay, it is immediately allocated to a nee..
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