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Helen’s preferences over CDs (C) and sandwiches (S) are given by U(S, C) = SC + 10(S + C), with MUC = S + 10 and MUS = C + 10. If the price of a CD is $9 and the price of a sandwich is $3, and Helen can spend a combined total of $30 each day on these goods, find Helen’s optimal consumption basket.
Outline reasons why the marginal revenue product differs between workers in different jobs.
In 1980, Denmark had a GDP of $70 billion (measured in U.S. dollars) and a population of 5.1 million. In 2000, Denmark had a GDP of $160 billion (measured in U.S. dollars) and a population of 5.3 million. By what percentage did Denmark’s GDP per capi..
A health insurance company knows that there are two types of customers (smokers and non-smokers), each facing different health risks. Explain the problem of “adverse selection” and the problem of “moral hazard.” Give one example of a market in which ..
The recent immigration of labor into the United States from Mexico has led to increased calls for new restrictions on this movement of labor (including greater enforcement of existing restrictions). What would be the costs and benefits to the United ..
The _____ statement can contain both a review of the evidence and an attack of the other side’s case.
Set up an Edgeworth Box to depict this situation and elucidate why the situation is unlikely to be Pareto efficient.
State and Local Governments in this country use sales taxes as means of generating revenue. In other countries, a value added tax (VAT) is used to generate Government revenue. Please explain the difference. In your opinion, which tax system is most e..
1.nbspnbspnbsp load the blue spruce light up data latest file through 2013.extract and specify a model that predicts
Find the short run industry supply curve (or equation). Find the short run: price, industry output, firm output, and firm profit. What are the long run price(s) and quantity (ies)? Suppose the industry as in E above becomes a monopoly. Find the long ..
Elucidate the relationship among scarcity, choice and opportunity cost in the context of managerial economics.
Consumers of computers value high-quality ones at $1,000 and low-quality ones at $100. The supply of high-quality computers is QH = PH ? 200. The supply of low-quality computers is QL = 2PL ? 100. Only sellers know the true quality of the computers b..
What are the differences between economic and accounting concepts of cost? T or F If a firm is making economic profits, then it must also be making normal profits. How are prices determined under perfect competition?
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