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Several medical studies have shown that drinking green tea is good for the heart and preventing cancer. How would such a study affect the public's demand for green tea at it's current price? How would it affect the type of plants that farmer's planted in the future?
The perfectly competitive DVD copying industry is composed of many firms who can copy five DVDs per day at an average cost of $10 per DVD. Each firm must also pay a royalty to film studios, and the per-film royalty rate (r) is an increasing functions..
Assume the individuals could either have strict preferences or be indifferent. Construct the table illustrating this rule: Does this rule satisfy the condition of Universal Domain? If not, give a counterexample.
Assume that you were ready to buy a custom tailored dress (or men’s suit) and you are prepared to pay up to $200 for it. Also assume that the tailor is prepared to sell that item of clothing for as little as $100. When you arrive at the tailor shop, ..
Illustrate what is the slope of the budget line for apples and bananas if apples were graphed on the horizontal axis and bananas were graphed on the vertical axis.
The Marginal Product of Labor and the Marginal Product of Capital are given.
Suppose the government were to provide a $2 per hour subsidy for families who purchases child care, regardless of work or wage status. This will..
A company planning to borrow $9.0 million for a plant expansion is not sure what the interest rate will be when it applies for the loan. The rate could be as low as 8% per year or as high as 10.2% per year. The company will move forward with the proj..
Sam has preferences for consumption goods (C) and time spent on leisure (L). The utility function is u(C,L) = CL. The household also has a home production technology summarized by a production function. How much time will Sam spend in leisure? How ma..
A forecasted increase in metal prices has encouraged the Delta Resource Company to consider the expansion of the capacity in one of its open pit mine operations in Northern Ontario. Existing Capacity: Positive after tax annual cash flows of $12.5 mil..
Describe the contents of the article very briefly and include a critique could agree, disagree or both agree and disagree with the article.
If people in Pantherville hold all money as currency, what is the quantity of money - what is the quantity of money?
Bill gets utility from consuming food (F) and clothing (C) represented by the following utility function: U(F,C) = FC + F. The price of food is $1 per unit and the price of clothing is $2 per unit. Bill’s income is $22. Find the utility maximizing ch..
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