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Joe likes to maximize his utility. He is currently weighing two options for his meal, pizza or pasta. A pizza costs $9 while a dish of pasta costs $12. Is it correct to say that, if Joe opts for pasta, then Joe’s marginal utility from pasta is larger than Joe’s marginal utility from pizza?
How much would you be willing to pay for this security if his market interest rate is 6%? Suppose that you have just purchased the security, and suddenly the market interest rate falls to 5%. What is the security worth?
Increasing the earnings of minimum wage employees is desirable, and raising the minimum wage is the best way to accomplish this. Everyone should enjoy open access to health care. Health care subsidies will increase the consumption of health care.
If your average pre-retirement earnings were $30,000 per year, your highest preretirement earnings achieved was $90,000 per year and you receive $20,000 per year in retirement benefits, what is the replacement rate?
Determine the enrollment variance for the month.Determine the utilization variance for the month.Determine the efficiency variance for the month.
Explain what happens to consumption, investment, and the interest rate when the government increases tax rates (but keeps government expenditures constant). How does the size of the MPC affect the outcome?
How much control might an organization have over pricing based on a product's elasticity. Discuss which of elasticity rules you used to determine your answer.
Illustrate how the market, if left alone, would move us out of the recessionary gap. Also, explain all, if any, fiscal policy steps that can be used to lift us out of the recessionary gap. Explain which method, the market or fiscal policy, do you ..
The monopolist's demand curve: Under which of the following situations would a monopolist increase profits by lowering price (and increasing output): Which of the following is characteristic of a monopolist's demand curve?
According to the information/decision-making theory:
Andrew has decided to open an online store that sells home and garden products. After searching around, he chooses the software company Initech to provide the software for his website since their product required the least amount of specialized inves..
Norman Internet Service Company (NISC) is interested in selling common stock to raise capital for capacity expansion. The firm has consulted First Tulsa Company, a large underwriting firm, which believes that the stock can be sold for $50 per share.
Under what conditions can we be sure that perfect competition leads to a more efficient use of resources tan monopoly? How prevalent are these conditions in the real world? As an employer wants to reduce the production cost during the economic recess..
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