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In the two-period consumption model, suppose that Y1 = 100 and Y2 = 210. There is no initial wealth. If the utility function of the individual is U = log(C1) + .9 log(C2) and the interest rate is 5%, what are C1 and C2? How would your answer change if U = log(C1) + log(C2)? Explain in words why the change would happen?
Draw a graph how hot weather affects the market equilibrium pice and quantity of gas - during the Summer of 2012 the US experienced record hot temperatures.
When the firms in the industry are just able to cover their cost of production, economic profit is zero. Therefore, if demand falls, causing prices to go down even a little bit, all of the firms in the industry will be driven out of business
Question: Do brief research on ASEAN Economic Community (AEC) and discuss on the following questions: How does the AEC affect the multinational firms investing in AEC members? What is the effect of AEC on the U.S. economy?
LG Electronics plans to invest 30 trillion won by 2010 to make this happen, hoping that the cost savings and reduction in risks associated with vertical integration justify the investment.
WHAT SPECIFIC GLOBAL IMBALANCES ARE INDENTIFIED? WHY ARE THESE OF MAJOR CONCERN? WHAT COMINATION ECONOMIC CONDITIONS WOULD WORSEN A HAED-LANDING?
consider a firm that faces an upward sloping supply curve.since the firm faces an upward sloping curve it will not pick
If the lending process continues as far as it can possibly go, how many deposit dollars will be created from this initial $1000 deposit?
The market is perfectly competitive which constant input prices and each firm has the same cost structure from the table listed below;
Indicate whether each of the following statements is true or false and explain why. a) A competitive firm that is incurring a loss should immediately cease operations.
Suppose your marketing department does a survey of potential users and finds that these users place the following values on the two versions of your software If the numbers of home and commercial users are equal, and you cannot distinguish between ..
Suppose that the probability that a used bike is a lemon (low quality) is 'p' and the probability that a used bike is a plum (high quality) is '1-p'. If a buyer is willing to pay $H for a plum used bike and $L for a lemon used bike,
A bridge over the Coosa River currently has no tolls and an average passage of 880 cars per day. State government wants to place a toll on the bridge with the objective of raising the most revenue
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