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Suppose there are two types of shirts available to Carl: red shirts and black shirts Carl is always willing to exchange three black shirts for one red shirt.
a. What type of preferences is mike exhibiting?
b. Draw several indifference curves to illustrate Carl's preferences.
c. What is Carl's MRS?
d. Are Carl's preferences monotonic? How do you know?
e. Are Carl's preferences convex, strictly convex, or not convex? Explain/show how you know.
A firm is currently producing 80 units of output. At this level of output produced, P = 150 and ATC = 120. Also assume that MC = 130 and MR is constant at all output levels and equal to 150. Is this firm making profits? If so, what are these profits?
For each of the next 7 years, he received total dividends of $50 per year. For the remaining period, he received total dividends of $100 per year. What rate of return did he make on the investment?
A broadband service company borrowed $2.4 million and repaid the loan in amounts of $200,000 in years 1 and 2 plus a lump sum amount of $3.168 million at the end of year 3. What was the interest rate on the loan?
Explain how do you run an oligopoly to make the largest possible profit. The oligopolistic producer of this vehicle failed to heed market signals. It failed. Can you name the company.
What value of "C" make the deposit series equivalent to the withdrawal series at an interest rate of 9% compounded annually?
The annual demand for a product has been projected at 2,500 units. This demand is assumed to be constant throughout the year. The ordering cost is $30 per order, and the holding cost is 40 percent of the purchase cost. Currently, the purchase cost is..
Semiconductor manufacturing involves taking a flat disc of silicon, called a wafer, and depositing many layers of material on top of it. Each layer has a pattern on it that, upon completion, defines the electrical circuits of the finished microproces..
Apple Inc is planning on launching the new iWatch product in April 2015. The Marketing Department has determined the initial demand function by using regression modeling over the last 12 months. The initial demand function for the iWatch is estimated..
llustrate the black market for lnternet access, comprising the implicit supply schedule.
Environmentally appropriate production technologies also precuts with eco friendly packaging also recyclable materials.
Your firm spent $100 million developing a new drug. It has now been approved for sale, and each pill costs $1 to manufacture. Your market research suggests that the price elasticity of demand in the general public is -1.1. What price do you charge th..
Does this model of coverage afford well or poorly with the model of demand for insurance set forth? What should we conclude from this?
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