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The utility function, U = x - 0.03x2 + y, has a quasilinear functional form. You can see what it looks like by choosing the Polynomial option in the Quasilinear sheet.
1. Compute the value of the utility function at bundle A, where x = 10 and y = 1. Show your work.
2. Working with bundle A, find the MRS as x rises from x = 10 to x = 20. Show your work.
a. Why is the soft drink industry so profitable during the years in this case b. Update the profitability what has happened to Coke and Pepsi in the last five years c. Coke and Pepsi have been the dominant players in this market. Today, what market..
Calculate the marginal propensity to consume (mpc) and then the multiplier in this economy.
The management of the Mini Mill Steel company estimated the following elasticities for a special type of steel : Ep=2, EI=1, EXY= 1.5 and X refers steel and Y refers aliminum
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would consumers benefit more from a tariff or a quota on imports? provide one 1 supporting fact to support your
Firm XYZ measured its MP of labor curve to be the following: MP = 4000 - 2L where L is the number of hours of labor hired per day. XYZ produces gadgets that are sold for $20 each and is able to hire workers for $10 per hour. How many hours of labo..
Just because something is useful doesn't mean it brings someone utility and vice versa. With this being the case, provide two examples of a good or service that are useful and will bring a certain individual utility because of their usefulness. Also,..
Explain and discuss the Cuts in public expenditure announces since 2010, why and how will this help/ affect the economy as a whole. Analyse For and against education cuts or not
An individual who makes $32,000 per year anticipates retiring in 30 years. If his salary is increased by $600 each year and he deposits 10% of his yearly salary into a fund that earns 7% interest, what is the future worth at retirement?
A pension fund manager who plans on selling bonds in the future: Considering the value of a financial instrument, the bigger the size of the promised payment? Rising inflation expectations lead to rising nominal rates because
Where P is the price of the product and Ps is the price of a substitute good. The price of the substitute good is $2.00. a. Suppose P = $1.00. What is the price elasticity of demand? What is the cross-price elasticity of demand?
Briefly explain the distinction between accounting measurement and accounting disclosure. Which of the two reporting processes do you think promise substantial innovative advances during the next 10 years? Why?
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