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Matt and Johnny both purchase pop and chips at the same convenience store. They have different tastes for pop and chips, so Matt buys 3 cans of pop and 10 bags of chips whereas Johnny buys 15 cans of pop and 2 bags of chips. If they both have well-behaved (monotonic and diminishing MRS) preferences, then Matt's marginal rate of substitution between cans of pop and bags of chips is lower than Johnny's.
Suppose 10% of all workers are of high ability. If a firm knows a worker's ability, workers of low ability are paid $20,000 and workers of high ability are paid $30,000. Obtaining a university degree can signal high ability, and the cost of degr..
Assuming this is a sequential move game with the employer moving first, indicate most likely outcome. Does the ability to move first give the employer an advantage? If so, how? As the employee, is there anything you could do to realize a higher..
Give an example of a positive externality and of a negative externality. How does an externality affect the market outcome.
exchange economy with two goods x,y. Person A has 16 units of x and no y; B has 4 x and 40 y, Ua(x,y)= x(^1/3)Y(^1/9) Ub(X,Y)= X^(2/3)Y(^1/9) 1) the demands for goods x and y for both persons. 2)state the conditions for market equilibriumeral.
A bank announces that it has changed its interest computation method to continuous compounding. Now $2000 left in the bank for 9 years will double to $4000. What is the nominal interest rate, compounded continuously, is the bank paying.
Select a (domestic) public limited company of your choice which has some degree of market power. In an essay of 2400 words or fewer, evaluate the pricing strategies it employs for its core product/business in order to increase its market share and p..
Describe the business research and its purpose. What did the researchers conclude as a result of their research.
Studies indicate that the price elasticity of demand for cigarettes is about .4. If a pack of cigarettes currently costs $2, and the government wants to reduce smoking by 20 percent, by how much should it increase its price?
What are some of the positive externalities of education? Why may higher education offer fewer positive externalities than primary or secondary education?
Many companies are using computer mediated communication for training and updating their employees. They must choose the most effective and efficient manner of communication. Effective and efficient may be defined as achieving the communication go..
Utilize the information to predict the yearly number of VCR's sold under the following conditions.
John Smith, C.E.O. of A.B.Co. is attempting to estimate the quantity of his product that will be demanded during April. At the current price of $2.00, A.B. Co. is selling 100,000 units per month. Mr. Smith has been informed that on April 1st
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