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You wish to invest your savings of $20,000 in government securities for the next 2 years. Suppose that currently you can invest either in a security that pays interest of 8 percent per year for the next 2 years or in a security that matures in 1 year but pays only 6 percent interest. If you make the latter choice, you would then reinvest your cash flow at the end of the first year for another year.
Assume that U =xy and that Px =$10, Py=$5, and I=$100. Use the Lagrange method to find the first-order conditions and the optimal values (i.e., utility maximizing values) of x and y.
Why the price of computers dropped as their power and features has have increased?
There are 100 firms in the market. Market demand is Qd = 500-Pmkt What are the shut-down and break-even points for the firm?
Calculate the annual net premium. Premium payments may be made monthly, but in this case a service charge of 2.5% is added to the annual net premium.
The government places a price floor on milk which is below the current equilibrium price of milk. The number of children who drink milk and the number of farmers who produce milk increase at the same time.
Gerry work 40 hours a week, managing Gerry's Market, without drawing a salary. He could earn $600 a week doing the same work for Jean. Gerry's Market owes its bank $100,000, and Gerry has invested $100,000 of his own money. If Gerry's accounting ..
microeconomic problemmary produces both hats as well as apple piesif mary uses all her resources to produce hats she
Using the concept of opportunity cost, explain why in developed countries with higher average incomes there is more support for costly environmental controls.
What do we call a collection of public programs that President Franklin Roosevolt instituted to alleviate economic suffering during the Great Depression?
Brand names can be important to the success of a firm in some industries. Consider industries that demonstrate monopoly, monopolistic competition, oligopoly, and perfect competition. What is the goal of creating a brand name for each of these mark..
As Marthinsen explains, GDP and unemployment are among the most important economic indicators, but there are hundreds more that economists analyze. The National Bureau of Economic Research maintains a comprehensive listing with links (Links to an ext..
Since the end of World War II, some countries have achieved great strides in a variety of development indicators, whilst others have stagnated, and still others have had mixed experiences.
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