Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1) Suppose that a consumer has a choice between gallon jugs of milk and half gallon jugs of milk. The consumer only cares about how much milk she consumes and not about the size of the jugs of milk.
a. Write a utility function for this consumer.
b. Suppose the price of the half gallon jug of milk is $2, the price of a gallon jug of milk is $5, and the consumer has only $10 dollars to spend on milk. Set up a Lagrangian and set up the first order conditions for the maximization problem.
c. Is there a solution to the first order conditions? If so,solve for the opitmal quantities of gallon jugs and half gallon jugs. If not, what is a solution to the maximization problem?
Illustrate what would be total incremental investment in accounts receivable and invent theory to support expected increase in sales.
Suppose a small firm that selles their output in a competitive market, and then there is an unexpected in demand for their product. What are the important effects for the firm and markets to operate?
How do fixed costs play a role in your analysis? What is the difference between shutting down and going out of business?
Explain why the change is not likely to be a pareto improvement. Which of these changes might be approved under the compensation principle? Which might be approved under a Rawlsian social welfare function?
Suppose that initially the price is $50 in a perfectly competitive market. Firms are making zero economic profits. Then the market demand shrinks permanently and some firms leave the industry and the industry returns back
Samson Industries purchased a new manufacturing system that has an estimated useful life of 17 years. The company anticipates annual operating costs will be $1483 and will increase by a uniform percentage of 4% per year. How much should the company d..
Explain how an improvement in lifestyle would alter the shape of the total product curve for medical care. (Assume that both total product and marginal product will increase). Also provide a graph to illustrate your answer.
A bidders' value for a good may be low ($2), medium ($5), or high ($7). There are an equal number of potential bidders having each value. Suppose two bidders show up for an auction at which the good is offered. The possible outcomes of the auction ar..
In the News: Joe Camel Acquires Newport In a widely anticipated move, Reynolds American, producer of best-selling brand Camel, announced yesterday that it has agreed to buy Lorillard, maker of Newport, the number 1 menthol cigarette. What were the va..
Consider two small open economies that maintain fixed exchange rates and are linked to world capital markets under conditions of imperfect capital mobility. Suppose that the two economies are otherwise identical, except that capital flows (portfolio ..
Using a demand/supply diagram, illustrate and explain the effects of the imposition of an export tax on a good Y by a home country’s government on (i) the home country’s consumers of Y, (ii) the home country’s producers of Y, and (iii) the home gover..
A medical device company has a monopoly on a certain class of cardiac implants. Demand for the implants is given by P=28000-5Q and marginal revenue is given by MR=28000-10Q. The total fixed costs for the implants division is 50000 and the marginal co..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd