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Good X and good Y are complements. U(X, Y) = min (5X, 4Y). Price of X is $5 and price of Y is $4. The total income is $80. (a) Write the consumption ratio of good X and good Y. (b) Write the budget constraint. (c) What is the consumption bundle to maximize the utility level? What is the maximum utility level?
What happens to price and output in the Cournot, Bertrand, and Stackelberg models if marginal costs increase by 10 percent? The market demand is p = a-bQ and the marginal cost is constant across firms, i.e. mc1 = mc2 = c. You may consider for two fir..
disposable personal income decreases by $50 billion and trade deficit is reduced by $15 billion. By how much has national income (Y) change.
What is the future worth of $ 1000 in month 1, $1,040 in month 2, and amounts increasing by $40 per month through month 12, at the end of year 2 if the interest rate is 23.7631528% per year, compounded continuously?
what is the formula for that equation? Assume you have 5 uneven payments to make and you want to know what you will be paying at 10% per payment (year) on this uneven payment.
Is the market for coffee perfectly competitive. Elucidate does the coffee market meet all six conditions of a perfectly competitive market.
Assume that your community has a newly-discovered radon health problem. From which state and local government and non-government agencies would you seek advice? Why would they be chosen? How does this fit their mission? What expertise would they have..
Elucidate the disadvantage of the simultaneous lending strategy. Be mindful of the group lending scheme which Grameen Bank adopts.
Yet many financial decision-makers at some of the most prominent firms in the world continue to use less desirable measures such as the payback.
International data show a positive correlation (i.e, relationship) between political stability and economic growth. Through what mechanism could political stability lead to strong economic growth? Through what mechanism could strong economic growth l..
Would the employee be better or if, instead of the health insurance, she was given a £100 per week pay increase which would be taxed at 20%.
Think about the eight symptoms of "GroupThink" as discussed in the text. Have you experienced these symptoms in groups that you are a part of or are aware of? How was the decision affected?
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..
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