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John and Sally have recently married and are trying to decide how much money to spend on groceries each month. Jane prefers purchasing organic food even though it costs slightly more. Joe would prefer to save money and buy generic, non-organic food brands.
a. Draw a utility frontier with Sally's utility on the X axis and John's utility on the Y axis.
b. On the graph above, choose threat points for John and Sally and label them. Label one point on the utility frontier that would be acceptable to both John and Sally. c. Label a point on the utility frontier that would not be acceptable to Sally.
Let ‘x' be the amount that player A asks for, and let ‘y' be the amount that B asks for, when making the first offer in an alternating-offers bargaining game with impatience. Their rates of impatience are ‘r' and ‘s' respectively.
what is the equivalent uniform annual cost per machine (years1 through 5) at an interest rate of 12% per year?
A monopolist faces a market demand curve given by Demand: Q=70-P. The monopolist faces the following cost structure: C=0.25Q^2-5Q+200. What output level will the monopolist choose in order to maximize profits
The widget market is competitive and includes not transaction costs. Five suppliers are willing to sell one wide at the following prices: $30, $29, $20, $16, and $12. Five buyers are willing to buy one widget at the following prices: $10, $12, $20, $..
This would cover years 4 and 5, after the manufacturer's warranty has expired. Suppose that the expected repair costs for years 4 and 5 are $850 per year. If your discount rate is 5.5% per year, should you purchase the extended warranty.
Lawson just purchased an income annuity for $323,335. The income annuity pays interest at a rate of 3.85 percent compounded monthly. The first income payment will be made today and the final income payment will be made in twenty years.
A used car dealer advertises financing at 0% interest over 3 years with monthly payments. You must pay a processing fee of $250 at signing. The car you like costs $6000. a) What is your effective annual interest rate
To demonstrate that a utility function that is a monotonic transformation of another utility function gives that same first-order conditions and hence the same demand functions, multiply the utility function U = U(X,Y) by a constant
What has happed to health care costs compared to other consumer spending? What does this imply for the US debate on health care?
Using the marginal cost and new marginal revenue numbers in Table 1, find the number of beds Ned should sell.
Would you look for another place to shop or continue to shop there but voice your dissatisfaction? What factors might influence your decision?
Why do economic forecasters pay special attention to investment plans? Take a look at the Conference Board's index of leading economic indictors at http://www.conferenceboard.org.Which of those indicators might affect investment?
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