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Bridget has a limited income and consumes only wine and cheese. Her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle and the price of cheese is $4 per pound. The last bottle of wine added 50 units to Bridget's utility, while the last pound of cheese added 40 units. a. Is Bridget making the utility maximizing choice? Why or why not? b. If not what should she do instead? Why?
The firm’s production function is Y = min {A/4; 2B} + 5C. Suppose that the price per unit of input A is 2 euros, the price per unit of input B is 6 euros, the price per unit of input C is 30 euros. What is this firm’s minimum cost of producing 40 uni..
Clancy and Eileen are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to..
Generational accounting techniques (recall Chapter 4) suggest that future income tax rates will be higher than current tax rates. How should this information affect the savings rate? How should it affect the relative appeal of Roth versus traditional..
To meet increased delivery demands, a Dairy company just bought 15 new delivery trucks. Each truck cost $30,000 and has an expected life of 4 years. The trucks can each be sold for $8,000 after four years. Using CCA Class 10 depreciation, determine a..
Explain the use of a Letter of Credit. Why do firms use counter trade? How does capital budgeting for international projects differ from that of domestic projects?
Explain the behaviour of economics and how its support and criticizes veblen theory (minimum 300 words) please.
If public opinion surveys show that the majority of Americans regard inflation as a more serious threat than unemployment: Does this imply that the majority of Americans would rather be unemployed in a period of stable prices than employed in a time ..
In looking at GDP we see that not all aspects are counted. Do you find that the items like buying a home or a used car should be counted in GDP?
q.business and economic forecasting please respond to the followingbullfrom the e-activity develop a regression
What is the applied business research or research method and design (or both)? What is the purpose of the study? What is the alignment between the research purpose and problem identified by the authors?
Distinguish between the following terms- Direct subsidies vs. indirect subsidies. Auction method quota allocation vs. Rent-seeking method quota allocation. Safeguard import Tariff vs. Import tariff.
Illustrate what are the advantages and disadvantages of having monetary policy in the hands of the Federal Reserve System rather than in the legislative or executive branches.
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