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Potatoes cost Janice $1.00 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. If she feels that the fist pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all the subsequent pounds are worth $0.30, how many pounds of potatoes will she purchase?
Suppose instead that the government wishes to impose a value tax of $0.25 on each dollar of the consumer's expenditure on good 1.Show the effect of imposing this tax in a graph containing before and after budget lines.
Growth of India and China - China and India are often referred to as two of the fastest growing countries. Compare their recent growth rates to the U.S. growth rate.
Determine the economic implications for the United States of the increase of China and India as significant economic powers.
Why does the assumption of independence of risks matter in insurance What would happen to premiums if the probabilities of houses burning were positively correlated Can you think of a situation where they might be negatively correlated
The last free cash flow for a company was $51 million and it is expected it to increase at a constant rate of 4% indefinitely. The company's weighted average cost of capital is 12%.
Suppose the following table describes the marginal costs and marginal benefits of waste (garbage) reduction. What is the optimal amount of garbage What is the situation if no garbage is allowed to be produced Percentage of Waste Eliminated/Marginal..
Suppose a UAW labor contract with General Dynamics is being renegotiated. Some of the many issues on the table include job security health benefits and wages. If you are an executive in charge of human resource issues at General Dynamics
During the period 1973-1975, the United States experienced a deep recession with a simultaneous sharp rise in the price level. Would you conclude that the recession was the result of a supply shock or a demand shock.
Assume there are 2 goods in the work: apple and raspberry. Say that geoffrey has a utility function for these goods, where r= quantity of raspberry, a =quantity of apple. U = 4r + 3a what is the marginal rate of substitution between the raspberry
In an article appearing on July 4th 2004, the aegency cites Mexico's concern about the production of oil by the OPEC carte. Assume the current daily demand for OPEC oil is given by the following equation P=50-0.001Q where P is the price per barrel
Some fields have large enough quantities of both oil and natural gas that coordination must be achieved for the production of both, rather than oil a in our examples. Will fields with both oil and gas have greater difficulties in unitization than ..
Illustrate a supply or demand curve shift for the following article. The price of oil fell on Monday, January 12, 2009 as the weak economy has undermined oil demand. Light, sweet crude for February delivery fell $3.24 or 7.9%, to $37.59 a barrel.
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