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There are two commodities, h = 1,2, with prices denoted by, p1,p2>0 and income denoted by m>0. The budget constraint is defined by the equation : p1x1 + p2x2 = m, where x1 is the quantity of good 1 and x2 is the quantity of good 2.
Assume the consumer prefers to consume equal amounts of good 1 and good 2 whenever possible. Calculate the preferred amounts x1 and x2 as functions of prices and wealth.
Discuss and explain the features of the Danish economy and why the Danes overwhelmingly support globalization and job outsourcing.
the production possibility frontier model showed the tradeoff between current consumption and capital goods. Explain the role of saving in this model and how increased saving will lead to greater economic growth in the future.
A political campaign manager must decide whether to emphasize television advertisements or letters to potential voters (mail outs) to potential voters in an election campaign. Describe the "production function" for campaign votes.
The following graph shows the supply curve for a group of sellers in the U.S. market for Blu-ray players (orange line). Each seller has only one Blu-ray player to sell. The market price of a Blu-ray player is shown by the black horizontal line at ..
A popular magazine reports that wrist watches are becoming the highest fashion craze. What affect will this have on the demand for watches, and what will happen to the price and quantity of watches sold on the market
Illustrate what amount should Kilarny Company pay for this investment if it earns a 6% return. What cash proceeds did Galway Bay receive from issuance of the bonds.
In March of year 2020, the Performance Marketing Company begins construction on a new warehouse.. This warehouse operation will be the only business activity of this new company (thus this is a small company with no other taxable income besides th..
Assume initially that the exchange rate is $2 per pound, and a particular car sells for $20,000 in New York and 10,000 pounds in London. Create new prices and a new exchange rate that will yield PPP.
Illustrate graphically and compare the profit to be gained by a monopolist and a single firm in an identical perfectly competitive industry by developing an identical cost-saving innovation.
Illustrate what would you expect to happen to the total expenditures on good X.
Your company asked you to evaluate two potential projects. These projects are active for 10 years and have no salvage life. What is the expected value of the NPV for each of the projects? What is the standard deviation of the NPV for each of the proj..
1.) Stannards Capital Investment Corp invested $576,300 to buy a note that matures in 2 years for $725,000. Find (a) the simple interest rate and (b) the simple discount rate. 2.) A $10,000 T bill with 73 days till maturity is sold at a 5.48% simpl..
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