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Boo spend all of her income on tacos. There are only two varieties of tacos: chicken and pork, and Boo preferences pork taco. You could write her function as U=C + 3P. Chicken tacos cost $1, pork tacos $2.50, and she has an income of $40.
Derive Boo's optimal consumption bundle.
just about everyone agrees that there is a legitimate and important role for government in business. where the
For each of the following situations, find the consumer’s optimal bundle. Be sure to show your work. Also, for each case, draw the consumer’s budget constraint, indicate the optimal bundle on the graph, and accurately draw the indifference curve that..
A tax system achieves equity when:
The national debt of many developed nations is projected to grow to unsustainable levels. Why might national legislatures welcome higher inflation? Does inflation offer a means for a country to finance its increasing debt?
Research and present one CEO (Chief Executive Officer) pay package. Does this CEO earn more money if the company performs well? What penalty does the CEO receive if the company does not perform well?
Explain how that factor can cause productivity figures to be misleading. Is there another way to compare the two plants that would be more meaningful?
For each of the following situations, explain whether the demand curve for bonds, the supply curve for bonds, or both would shift. Be sure to indicate whether the curve(s) would shift to the right or to the left. What would be the effect on the equil..
Explain how markets in perfect competition differ from markets that are imperfectly competitive. Illustrate what role does firm have in determining market price under each condition.
"Since the statistical discrepancy in the U.S. balance-of-payment accounts is so large, we cannot rely on the U.S. BOP statement to give information on the size of various 'balances' with any precision. Perhaps the U.S. BOP statement is essentially u..
Consider a Cournot duopoly with the inverse demand p = 130 ? Q. Both firms have constant marginal and average cost MC = AC = 10. Find the Cournot-Nash equilibrium output and profit of each firm. Calculate the consumer surplus and DWL.
What is the rationale behind the choice of target or acquirer, if appropriate for your opening bid and your overall bidding strategy.
Assume that the banking system is loaned up and that any open-market purchase by the Fed directly increases reserves in the banks. If the required reserve ratio is 0.2, by how much could the money supply expand if the Fed purchased $2 billion worth o..
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