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Melissa's utility function is U = mm (L, E/2, 2T) where L are lattes, E are eggs, and T is toast. She is on a diet and her calorie constraint for breakfast is Cbar = 600 calories. Suppose lattes have 300 calories, eggs have 100 calories, and toast also has 100 calories per serving. What type of utility function is this? Are these good complements, substitutes, or perfect substitutes? If she has to eat only whole servings, what will she have for breakfast, and how many calories will she consume? If she can eat partial servings, how would your answer differ?
Its terminal salvage value will be $23,000, with annual operating costs of $7,500 for labor and $2,500 for maintenance. The company's minimum attractive rate of return is 18%.
Elucidate the concept of the multiplier, and explain the role of the marginal propensity to consume in determining the size of the multiplier.
Considering companies operate in their own self interest, should cartels be legal.
what will be the value of the lost revenue after a 3-year period at an interest rate of 11.940397% per year, compounded continuously?
If the economy is competitive so that factors of production are paid the value of their marginal products, illustrate what is the share of total income that will go to land.
Evaluate change in costs over period in real terms, first in 2004 dollars and m in 2005 dollars. Are your answers same. Explain why or why not.
Winston Churchill once thought that democracy is the nastiest form of government except for all others.
Illustrate what is the euro-denominated return on Dutch deposits for this investor. What is the (riskless) euro-denominated return on British deposits for this investor using forward cover.
Can we say confidently whether good X is a normal good or an inferior good.
Illustrate what are the values for Qi and Di on the effective date of the study. If the economic limit is 20 BOPD, estimate the ERR.
iv. Find the utility maximizing combination of income and leisure. How many hours will this person work? Imagine the wage rate increases to $8 per hour. Will this person work more hours?
Illustrate what amount of profit does the industry fail to pick up by refusing to increase output by one unit
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