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Suppose all consumers are maximizing utility with convex indifference curves. All face the same prices, and are perfectly rational. According to microeconomic models, at the maximization bundle they should
A. All have the same marginal rate of substitution
B. All buy more of the least expensive good
C. All end up with the same bundle of goods
D. All have the same level of satisfaction
q1. are the normal returns on investment included as part of costs or as part of profits in managerial economics?
Now suppose Alex's income increases to $1,500 per year. What is her new optimal consumption of x? What is her new optimal consumption of z?
Assume new suppliers enter the market due to the increase in demand so the new supply curve is Q= -500 + 10P. Illustrate what are the new equilibrium price and equilibrium quantity.
q1. if consumption increases by 12 billion when real disposable income increases by 15 billion what is the value of the
Suppose you can hire your mechanic for up to six hours. The total benefit and total cost functions are B (H)=420H-40H^2 and C(H)=100H+120H^2. The corresponding formulas for marginal benefit and marginal cost are MB (H)=420-80H and MC(H)=100+240H.
To show the gradual development of inflationary pressures in the postwar U.S. economy, and to show why these pressures posed problems for policymakers and also for Keynesian economics.
Mary Carey, a clever 3360 student, has borrowed $125,000 at 8% from her parents. She is asking Dragon Kevin for $75,000 to start her own business. Kevin requires that the business make a 12% rate of return. If they both agree, what is Mary's before-t..
q1. suppose the federal reserve has set the required reserve ratio at .20. second republic bank currently has 150000 in
Prepare a table that shows total variable cost, average total cost, and marginal cost at each level of output.
q1. explain how does a country become an importer of a good? an exporter of a good? illustrate what is a tariff?
q1. angie silva recently opened the sandal shop a store that specializes in fashionable sandals. angie has just
Suppose that three risk-neutral bidders are interested in purchasing a Princess Beanie Baby. The bidders (numbered 1 through 3) have valuations of $12, $14, and $16, respectively. Which bidder wins an open-outcry English auction? What are the final p..
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