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Draw graphs with quantities of pepperoni pizza on the horizontal axis and quantities of anchovy pizza on the vertical axis to illustrate the following situations. In each case draw two different indifference curves and make a little arrow pointing in the direction of greater preference. a. Marvin loves pepperoni pizza and hates anchovy pizza. b. Mavis hates anchovy pizza and is completely indifferent about pepperoni pizza.
Suppose an investor’s utility function is given by U(r) = 1/3 E(r) − 1/2 A · V ar(r). Suppose there is a risk-free asset whose return is given by ¯r = 0.03. Suppose there is a single risky asset P that has an expected return of 0.08 and standard devi..
A free-market republican argues against the Pigouvian tax by pointing out that the conditions necessary for the Coase Theorem to produce an efficient equilibrium are present in this situation. Assuming that the republican is correct, describe two met..
Which segment of the population is one of the wealthiest in the U.S.?
If your goal is to stabilize output, explain how you would change the interest rate in response to the following events (or shocks). In each case, show the effects on the economy in the short run using the IS-MP diagram. Consumers become pessimistic ..
Wilderness Adventures has earnings per share of $2.45 and dividends per share of $1.05. The total equity of the firm is $850,000. There are 40000n shares of stocks outstanding. What is the sustainable rate of growth?
What will happen to the rate of inflation? How would the central bank react to the change in velocity if it pursued an NGDP target instead of a money stock target?
Why would Berkshire Hathaway own a number of furniture retailers? Outline the possible advantages and disadvantages.
Describe an example of a time you were not satisfied with a product or service and either did complain, or would have liked to complain. How might your e-mail to the manufacturer or provider of the service been written using the appropriate communica..
Throughout the company’s franchises, the probability is 0.60 that a meal lwill be served with in 45 seconds. What is the expected number of coupons a counter employee will receive when serving the regional manager?
Illustrate what advice would you offer Kyle also Chad when they are ready to present their business plan to a banker.
Where does NSW get most of its natural gas supplies from up to now? What is happening to total domestic gas production in Australia and Describe the structural change that is taking place in the Australian gas market.
The existence of non pecuniary benefits associated with education causes estimated rates of return to education to _______ the actual rate of return for a typical individual.
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