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What do we mean by utility? Distinguish between total utility and marginal utility. Use your own example in order to illustrate these concepts. Can the marginal utility from a product be negative? If yes, give an example. Would anyone ever purposely consume so much of a product that its marginal utility becomes negative?
Susie's boss offers her $100 to come to work instead. In considering what to do, which of the above would be considered a sunk cost.
Elucidate what other types of variables should be considered when determining what is reasonable in terms of maintenance expense.
Why is an understanding of Illustrate what development means crucial to policy formulation in developing nations. Why do you think a nation may have difficulties in agreeing on a rough definition of development.
Discuss how each of the 4 factors contributed to the elasticity of the good.
A major employer in a small town announces upcoming major layoffs of employees. What should we expect to happen to the consumption functions of the affected employees.
Assume that economy starts at equilibrium and mpc = 0.8. Illustrate what would be effect of a $500 increase in taxes once all rounds of multiplier process are complete.
Determine the price elasticity of demand at each quantity demanded using the arc or midpoint formula.
The Fed announced in April 2011 to it will continue the ‘quantitative easing' by completing the purchase of government securities by the amount of $60 billion.
What actions did Congress and Supreme Court take to reduce monopoly power in late-19th century. How successful were these actions in regulating business activities.
Explain why does a newspaper dispenser open to a stack of newspaper and essentially "trusts" a consumer to take just one copy.
Explain how are protectionist policies from other nations predicted to affect China's relative supply and relative demand.
A firm has fixed cost of 2,000.Its short-run production function is y+4X and one-half, where x is the amount of variable factor it uses. The price of the variable factor is $3,000 per unit. Illustrate where y is the amount of output the short-run..
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