Reference no: EM131202036
TRUE/FALSE WITH EXPLAINATION
1) If two people spend the same amount of money for a day at Disneyland (pay the same price for admission, pay the same amount for parking, etc.), then they have the same opportunity cost of spending a day at Disneyland.
2) All else equal, a consumer would prefer to have her income doubled rather than have a 50% reduction in the price she pays for every good.
3) In the area where you live, the price of a concert ticket is three times the price of a movie ticket. Your cousin lives in another country, in which the price of a concert ticket is two times the price of a movie ticket. If you and your cousin are both utility-maximizing consumers of concerts and movies, your MRS of concerts for movies will be lower than your cousin’s MRS of concerts for movies.
4) When food costs $10 per unit and clothing costs $20 per unit, an individual chose to consume 7 units of food and 4 units of clothing per month. When the price of clothing falls to $15 per unit, that individual now chooses to consume 6 units of food and 6 units of clothing per month. Because their consumption of one good has increased and their consumption of the other good has decreased, this individual’s utility could be either higher or lower than it was before the price decreased. [Hint: If you’re having trouble with this question, a graph might be helpful.]
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There exist games with multiple nash equilibria
: There exist games with multiple Nash equilibria. All Nash equilibria are based on dominant strategies. No player wants to deviate from a Nash equilibrium. A Nash equilibrium is a mutual best response
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For electricity and for fuel and lubricants for cars
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Both income and essential spending are measured
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About the technology maturation
: Anyone help me with this problem in excel? 4. Technology Maturation. Green Futures operates a solar panel power generation facility in Florence, Alabama. Green futures sells electricity for $0.07 per kilowatt hour. When should the panels be upgraded?..
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Opportunity cost of spending a day at disneyland
: If two people spend the same amount of money for a day at Disneyland (pay the same price for admission, pay the same amount for parking, etc.), then they have the same opportunity cost of spending a day at Disneyland. All else equal, a consumer would..
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Competitive firm price equal its marginal cost in short run
: Does a competitive firm’s price equal its marginal cost in the short run, in the long run, or both? Provide specific examples to support your answers. Does a competitive firm’s price equal the minimum of the average total cost in the short run, in th..
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Consistent with the concept of nash equilibrium
: Using the guess and verify method, you can clearly conclude that an outcome is consistent with the concept of Nash equilibrium only if: (Explain Reasoning) You find that both players are better off in that outcome than in any other possible outcome o..
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Section focuses on opportunity cost-short-run and long-run
: Section focuses on opportunity cost and short-run and long-run. Imagine that you are considering the purchase of a car from a dealership in your hometown, but you are not willing to pay the asking price. Present the economic arguments and analysis th..
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Advanced analysis-dollar value of the deadweight loss
: ADVANCED ANALYSIS Assume the following values for the figures below: Q1 = 20 bags. Q2 = 15 bags. Q3 = 27 bags. The market equilibrium price is $45 per bag. What is the total surplus when output level Q2 is being produced? What is the dollar value of ..
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