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A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of jeans is $30, and T-shirts cost $10. At the current rate of consumption, the marginal utility of jeans is 60, and the marginal utility of T-shirts is 30. Is this consumer maximizing his utility?
The vice-president for finance decided to invest $2,000,000 in a 2-month investment that pays 11.5% simple interest. how much interest will the college earn on the investment.
What factors amount for the rapid growth of the world trade since the second world war? Who are the major players in international trade today? Besides China and Japan, what other Asisan nations play signifcant roles in international trade?
A Federal Reserve Bank has recruited the economic consulting firm to prepare a paper on how the use of money has changed over the past 20 years.
Finance the expenditures with an equal increase in taxes and keep tax revenues constant and borrow the money from the public by issuing new government bonds
Explain how economies of scale and scope can lead to a larger business model. Will a firm that has one or both be bothered by antitrust legislation? Why/why not?
Compute the value of the price index for GDP for 2006 using 2005 as the base year. By what percent did prices increase.
If a bank manager was quite certain that interest rates were going to rise within the next six months, how should the bank manager adjust the bank"s six-month repricing gap to take advantage of this anticipated rise?
If the costs of one of the goods rise by 5 percent, Illustrate what will happen to the demand for the other product, holding constant the effects of all other factors?
Find out more about the airline industry. What is the price elasticity of supply for the airline industry.
Acme is sole supplier of security systems in product market and sole employer of locksmiths in the labor market. The demand curve for security systems is given by P=100-Q.
Can you see why, if price is set by the market, and the firm's marginal cost curve slopes up as a function of quantity, this rule tells the firm which quantity to produce in order to maximize profits. What is the shutdown rule for a perfectly compe..
What dangers are being shown by the rise in food and commodity prices? Explain. Why is it dangerous that the government is ignoring it?
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