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Brian has the utility function U(X,Y)= X+16sqrt(Y), where X is the quantity of water consumed, and Y is the quantity of coffee consumed. Let the price of water be Px=1 and the price od coffee be Py=4. Let I represent income. (a) If I =8, what are the quantities of water and coffee that maximize Brian's utility subject to his budget constraint? (b) what is the marginal utility of income when I =8
What amount should be amortized for year ended December 31, 2007. On January 1, 2007, Alatorre incurred organization costs of $275,000. What amount should be expensed in 2007.
Fixed costs of a company is $20,000 per year with variable costs of $15 per unit. If this company sells each unit for $20. What is the breakeven point? Show the answer with graph.
Why is a financial crisis likely to lead to a contraction in economic activity?
Some medical clinics participate in the testing of drugs that are still in the experimental stage. In such situations the Food and Drug Administration stipulates that the physician must explain to the patient the nature of the drug, its possible bene..
Assume that you borrow $15,000 for five years (annual payments) at a market rate of 5%. Assuming that inflation is 3.5%, what would the equivalent equal annual payment be in constant dollars?
We talked about customer relations being about the little things. Now we are looking at trends. Can you reconcile the little things with the trends in customer relations? To help get started, identify and discuss several 'little things' and trends in..
A hot dog vendor faces a daily demand curve of Q=1800-4p, where P is the price of a hot dog and Q is the number of hot dogs purchased each day. If the vendor has been selling 300 hot dogs each day, how much revenue has he been collecting? What is the..
Did the government spending increases and large budget deficits of 2008-2011 strengthen aggregate demand?
Illustrate what could be related goods to health care. Illustrate what are the inter-relationship between these goods.
If the supply of a product increases, then
Elucidate how the solow growth model differs from models of endogenous growth with respect to the sources of technological progress and returns to capital.
Public policy toward monopolies Suppose that the government is concerned that an electric utility company is taking advantage of consumers with unfair pricing policies. The government views electricity as a public good that is likely to be produced i..
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