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Maria consumes two goods, strawberries and other goods. Because of her exquisite taste, she buys her strawberries from a particular vendor. Her preferences over other goods y and strawberries x is characterized by a utility function U(x, y) = x + y, where y is measured in dollars and x is measured in pounds. Her income is $30/month. (a) In May strawberries cost $1.50/pound. What is her consumption choice? Justify either with math or a graph. (b) In July strawberries are $.50 (50 cents)/pound, what is her optimal consumption choice? Justify either with math or a graph. (c) In August her favorite vendor has a special: Strawberries are $2/pound, but a you get a $15 prepaid credit card with a purchase of 10 pounds of strawberries (think of this as getting cash back). What is her optimal consumption choice? Justify either with math or a graph.
Impact of Monetary Policy How does the Fed’s monetary policy affect economic conditions? Trade-offs of Monetary Policy Describe the economic trade-off faced by the Fed in achieving its economic goals.
Determine two leadership theories and two (2) leadership styles that support the definition of a public leader. Provide a rationale for your response.
Consider the market for music downloads. The market demand curve is given by P=10-(1/6)Q. Where Q is the number of downloads sold per hour and P is the price per download. Apple is the dominant firm in this market with constant marginal costs MC=6.
The consultants of Allcare Family Clinic (AFC) have determined that if the clinic hires two more practical nurses, without any other changes in its operation, it can increase the number of patients it treats during a week from 200 to 220. The weekly ..
One year of life is then worth a little less than $67,000. Actually, if you are talking of Quality adjusted life year, your last calendar year might be worth considerably less than one quality adjusted life year ignoring that. They can’t spend more t..
Wilson has a 40 percent interest in the assets and income of the CC&W Partnership, and the basis in his partnership interest is $45,000 at the beginning of 2014. During 2014, the partnership's net loss is $60,000 and Wilson's share of the loss is $24..
A 20 year coupon bond with face value $100,000 and a 4% coupon rate has a yield to maturity i = 0.08. What is the value of the annual coupon payment? What is the price of this coupon bond?
Determine how much a car owner would be willing to invest to achieve the new energy efficiency standards of 54.5 mpg. Assume that gasoline sells for $2.50/gallon and the owner expects to receive a 5% return on their investment. The owner travels 15,0..
A business called TopClass, Inc. has the following Costs and Benefits: Initial Cost: $70,000, Annual Costs: $7,500, Salvage Value: $10,000, and Benefits: $25,000 for years 1 and 2, $35,000 for years 3 and 4, $25,000 for years 5 and 6. The MARR is 10%..
Suppose your Zimbabwean bank account pays interest monthly with the interest rate quoted as an effective annual rate (EAR) of 50%. (a) What percent interest will you earn each month? (b) Suppose the weekly inflation rate in Zimbabwe is 1%. What is th..
If I spent all my money ($450,000) on a new house I could buy a house with 4500 square feet. I settle for a 1500 square foot house. (Each square foot costs the same.) The day after I close the deal a nearby nuclear power plant is condemned and the va..
Movies are distributed in a variety of forms, not just first run theatrical presentations. What other ways are movies distributed? (HINT: Distribution has nothing to do with how old a movie patron is.) What are the different price points? Using this ..
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