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Assume ESPN introduces a new performance comparison system for NBA players (basketball), i.e. preference relation for ranking players as strictly better, weakly better or indifferent (equally good). ESPN’s new criterion (the preference relation) is defined as: “better defender and better 3-point shooter". Please analyze which of the three axioms (completeness, reflexiveness and transitivity) does the ESPN’s new preference relation satisfies.
The Gorgonzolan central bank puts 5,000,000 guilders into circulation and each of the commercial banks holds 20% of deposits. Assume the public holds no currency. Initially all of the money is deposited into First National Bank. Show the T-account fo..
Determine the optimal number of plants that the firm should have to take full advantage of the market demand.
Assume that the market for wind turbines is a Bertrand oligopoly with two producers: General Electric (an American company) and Nordex (A German company). What will be the equilibrium price and quantity of turbines produced and sold by each company i..
What is Marginal Utility? Why does it diminish? Explain verbally, and using appropriate math/symbols, the slope of the indifference curve. Write out the equation for and explain the “Consumer Equilibrium Condition” or, as it is sometimes labeled, the..
Big State U charges in-state and outstate students different tuition rates. Instate students pay $2000 a term, and respond according to the following demand equation: QI = 23,000 - 2TI where QI = in-state student enrollment and TI = instate tuition. ..
Your firm is considering purchasing an old office building with an estimated remaining service life of 25 years. Recently, the tenants signed long-term lease, which leads you to believe that the current rental income of $210,000 per year will remain ..
A firm uses labor and capital (L, K), to produce an output. The hourly cost of labor is $10 and the hourly cost of capital is $50. Which combinations of labor and capital hours of use represent points on the firm's $100,000 Isocost line? Please show ..
Setting up nurse practitioner clinics to serve 20,000 newborns in Georgia would cost $6 million. This program would increase life expectancy at birth from 75.1 years to 75.3 years. How many life years would be gained? What is the cost per life year? ..
Training and Friction. Assuming diminishing marginal product of additional workers and diminishing marginal product of additional hours-per-worker, how would a profit-maximizing arm adjust its mix of workers and hours-per-worker in response to [ceter..
'The Theory of Individual Behavior', and much of the chapter is devoted to the use of indifference analysis to build a framework for demand theory. Indifference analysis goes to great lengths to explain consumer behavior and how consumers make choice..
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time? (Include data)
Please write in your own words. How has NAFTA affected the economies of North America and the EU affected Europe? What importance do these economic pacts have for international managers in North America, Europe, and Asia?
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