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The owner-manager of Good Guys Enterprises obtains utility from income (profit) and from having the firms behave in a socially conscious manner, such as making charitable contributions or civic expenditures.
Derive the optimization conditions if the owner-manager wishes to obtain a specific level of utility at the lowest possible cost?
Do these conditions differ from the utility-maximizing conditions?
Suppose that raw materials (input R) are fixed at 10 units. Determine the number of units of input L that maximizes the total product function.
Illustrate with a diagram and explain the long-run perfectly competitive equilibrium for the firm and explain and illustrate using a diagram why a monopolist would never produce in the inelastic range of the demand curve.
the buyer values and seller costs for another experiment in which students are buying and selling used textbooks. In this experiment, the seller pays the tax. Suppose that traders who are indifferent between trading and not trading go ahead and trade..
Suppose the recipient of a kidney transplant has stated that she would prefer 5 years of perfect health to the 10 years she expects to live with her transplant.
Assume that the Federal Reserve sells government securities from its existing holdings to financial sector and non bank public. Trace by the expected consequences of this secondary market action on banking system
government introduced an earned income tax credit. This reform has been considered controversial. a. Analyse the likely effects of the tax credit. b. What are the arguments in favour of the tax credit
What is the magnitude of J.R.'s consumer surplus at the equilibrium price and how high must the price of ribs be for Judy to supply 20 ribs to the market?
State Khinchine's weak law of large numbers and provide a proof of this result. Discuss conditions under which a law of large numbers exists for a sample of independent but heterogeneously distributed random variables.
What quantity should Titan produce to maximize total revenue and what is Titan's fixed cost? How do Titan's marginal costs behave as output increases?
Suppose that population standard deviation is 0.56 (instead of 0.45), without doing calculations explain whether a 95% condence interval for the population mean would be wider than, narrower than, or the same widt
A profit-maximizing monopoly faces an inverse demand function described by the equation p(y) = 50 - y and its total costs are c(y) = 10y, where prices and costs are measured in dollars.
Explain a political, economic, or social interaction of decision makers that you have heard about in words. The condition should involve decision makers, available actions
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