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Suppose an average traveler's tastes can be described by the utility function u(x1, x2, x3)=x1x3+x2, where x1 is miles travelled by air, x2 is other consumption, and x3 is an index of air safety that ranges from 0 to 100. Calculate the MRS of other goods for airline miles; i.e., the MRS that represents the slope of the indifference curves when x1 is on the horizontal and x2 is on the vertical axis.
what is the size of the bank's actual reserves. Required reserves are 10 percent of transactions deposits under the assumptions of the simple multiplier formula, then eventually the money supply will increase by.
Calculate Max's marginal utility from snorkeling at each number of hours per day. Does Max's marginal utility from snorkeling obey the principle of diminishing marginal utility.
On the same day, the San Francisco Chronicle had an article with the headline "Sharp Drop in Bay Area Home Sales"
According to comparative advantage, in which industries would you recommend the country to specialize. Has the country specialized in your suggested industries.
How might oligopolistic increase total revenue without changing prices.
Describe what a manufacturer of each product might do in the short run to increase production.
Jim Bradley is the director of the Bradley bakery. He has collected data on his store for the past year.
Suppose you read in the newspaper that all last week the Fed conducted purchases in open market, and that on Tuesday of last week it lowered the discount rate.
Illustrate what is the graph among utility and income,when marginal utility of income increases or deminishes.
Explain how high must the deductible be to encourage low-risk behavior
What output market with the appropriate starting position and show what effect the contractionary policy would have in the output market.
Illustrate what difference will it make to Sony pricing if clients have now become dissimilar?
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