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Suppose that Omar’s marginal utility for cups of coffee is constant at 2.5 utils per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 11 for the first doughnut he eats, 10 for the second he eats, 9 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. How big would that budget have to be before he would spend a dollar buying a first cup of coffee?
One type of benefits involves giving workers discounts on the firm’s products. We noted that this type of system could reduce the firm’s costs by reducing some marketing expenses. Explain why offering such discounts (as opposed to increasing workers’..
There are two general forms often used in time series decomposition analysis: additive model and multiplicative form. Give the expressions for them. When would you use additive model or multiplicative model in time series decomposition? Discuss.
One approach that government can use limit the right to pollute would be by issuing pollution permits. Without a pollution permit, compan's aren't allowed to emit pollutants into air,
What did the Federal Reserve do to combat the nancial crisis that accompanied the Great Recession of 2007-2009? What problems is the Federal Reserve currently having to deal with as a result of these activities?
Calculate firm 1's profit-maximizing output and profits in the absence of potential competition and calculate the output and profits of both firms in case firm 1 accommodates entry.
How does virtue theory apply to both the decision maker and the act under consideration by that party? Explain.
Suppose Humphrey starts out with four pounds of food and seven gallons of water, while Lauren starts out with eight pounds of food and five gallons of water. Draw an Edgeworth box that shows all possible allocations of these goods, and plot the endow..
If we had efficiency in the duopoly, what would the market quantity and price be? How does this compare to your answer?
Illustrate what are marginal net profit when Q=1? Q=5. Illustrate what level of Q maximizes net profits, Illustrate what is value of marginal net profits.
If the real wage can adjust to equilibrate labor supply and labor demmand, what is the real wage. In this equilibrium, illustrate what are employment, output, and the total amount earned by workers.
When looking at prices, you will find that they are flexible in our economy. What would happen if the government started to control the direction of prices? How would buyers be able to respond to these changes?
An HR manager comes with an matter symptomatic of an underlying problem. He says which levels of employee motivation in his organization are dropping leading to drop in employee productivity.
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