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Draw a utility of wealth curve for a risk-averse person. How would the shape differ if the person was not risk-averse (i.e. risk neutral). What are the gains from insurance for the risk neutral person? Show this on your figure.
Which of the following is upward sloping?
For a typical firm producing 100 units of output, short-run marginal cost is constant at $65, average total cost is $95, and average fixed cost is $30.
Economic surplus could be increased at a higher price because firms would generate more revenue.
Why is the growth of per capita real GDP a better measure of economic growth than the growth or real GDP? What is the level of output after four years of initial output equals $1000 and the economy grows at a rate of 8 percent a year.
If the demand curve for computers increases
Consider a market characterized by the following inverse demand and supply functions: PX = 10 - 2QX and PX = 2 + 2QX. Compute the equilibrium price and quantity in this market.
Conclude how the abatement levels should be reallocated across the 2 industries to minimize costs.
The production department for a company requires 7200kg of raw material for manufacturing particular item per year. It has been estimated that the cost of placing an order is A 72 and the cost of carrying inventory is 25 percent of the investment ..
What will happen to the equilibrium price and quantity of new cars if, simultaneously, the price of automobile insurance (a complement) increases and the price of steel decreases
Even if a perfectly competitive firm produces at a loss in the short run, continued production is prefer abled to shutting down as long as:
the top ten percentile cutoff was 95 points. a. What is the standard deviation for the class? b. What percentile did you score in?
What are the effects of inflexible prices? What are the fundamental questions on demand shock? Why are the demand shocks so important? Why government is responsible in resolving economic shocks?
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