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Farida has US$ 55 to spend on apples and oranges. Given the information in the following table, is Farida maximizing utility? Briefly Describe.
product
price
quantity
total utility
marginal utility of last unit
apples
$0.50
50
1,000
20
oranges
$0.75
40
500
30
assume that employers and workers agree that real wages should rise by 2 next year1 if inflation is expected to be 2
How does your analysis of VMP change if the employer is a monopolist producer of its output but a price-taker in the labor market?
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Qd=160,000-2000P Qs = 40,000+2000P MEC=.0006Qs. Qd is the quantity lots of paper Qs is the quantity supplied and P is the price per lot of paper.
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