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Derive the Marginal rate of Substitution (MRS), between X and Y
\(U(x,y)=(ax^{p}+(1-a)y^{p})^{1/p}\)
\(U(x,y)=ln(x)+y\) \(U(x,y)=x+Ax^{\alpha}y^{\beta}+y\) \(U(x,y)=x^{a}y^{1-a}\)
1. Draw a indifference curve and degree of substition betweem goods:
2. When the two goods are imperfect substitudes for each other, and assuming diminshing marginal rate of substitution.
Describe the output level of the firm, the number of workers it employs and the profit of the firm.
Suppose there are 100 firms in a perfectly competitive industry. Each firm has a U shaped long-run average cost curve that reaches a minimum of $10 at an output level of 8 units. Marginal costs are given by MC(q)=q+2 and market demand is given by Q..
Irrigation improves the yield of strawberries per acre (measured in pints) according to the fucntion S= -(w-2)^2 + 50 where S is the number of pints of strawberries grown per acre and W is acre acre feet of water used. strawberries sell for $4 pe..
What is the bank's duration gap in years? If interest rates increase 100 basis points then what will be the predicted dollar change in equity value?
University of Florida engineering students are planning operating a mobile car clinic in Gainesville, Florida, during their summer break. This is an option to summer employment stacking plastic cups
Suppose Cypress River estimates a linear trend without accounting for this seasonal variation. What effect would this omission have on the estimated sales trend?
Could anyone find out how the Consumer Price Index (CPI), the primary measure of inflation used by the government, is calculated. Why might this method not reflect the real cost of living increase for the average person.
Elucidate the bumper harvest increase or decrease the total revenue of American wheat farmers. How could you have predicted this from your answer to part a.
If it is good for comunity for people to own their own homes, home ownership should be subsidised with special tax advantages or subsidies.
Petra borrowed $12,500 thirty months ago from a lender who charges interest of 4.05 percent compounded monthly. She wants to borrow $10,000 more today. The original lender will not increase her loan, so she has found a new lender
Illustrate what would the Fed do if wanted to raise interest rates. What if it wanted to lower interest rates.
If the villagers together decided to achieve the allocation in part (b), what kinds of rules would the need to institute If they wanted everyone to benefit equally in the new system, what kind of tax and transfer system would they need
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