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Sam is interested in buying two types of goods, x and y. He can either use all his income to buy 3 units of x and 9 units of y, or 9 units of x and 3 units of y. If he spends all his income on x, how many units can he buy?
Pete and Paul live in an exchange economy (so we can use the Edge worth-box). The economy has endowment of 10 cheese slices and 10 crackers. Is Pete consuming 3 crackers and 5 cheeses slices a Pareto-optimal allocation? If not, how could you rearrang..
How many bushels of corn are purchased by consumers and at Illustrate what cost. By government. How much does program cost government. How much income do corn farmers receive.
According to the theory of purchasing power parity (PPP), what will happen to the value of the dollar (against foreign currencies) if the U.S. price level doubles and price levels in other countries remain constant? Why is the theory more suitable to..
What is the primary reason that economists view monopolies as a problem? Is this different than you would have expected? What methods are available to mitigate the impact of monopolies? Does being a monopolist guarantee a profit for the firm? Can you..
Elucidate why or elucidate why not. Does it matter whether the inflation is expected or unexpected.
Determine the point price and income elasticities for household furniture
ChemCore Company is engaged in the business of creating chemical solutions for cleaning pools. As a result of the chemical engineering process, a number of harmful waste products were created. Kyle Bishop lives downstream from ChemCore and has notice..
Consider the following production function. Y=K^5 (AN)^.5 , where both the population and the pool of labor are growing by rate n=.07, the capital stock is deprecciating at a rate of d= .03, and A is normalized to 1. What is the form of this producti..
What are two ways for a competitive firm to determine the optimal level of production, that is, the level of production that will maximize profit or minimize losses
People holding money in anticipation that bond yields will rise is an example of
It is priced at only $400. Assuming your opportunity cost of funds is 5 percent, which refrigerator should you purchase.
What is the cost function associated with producing y units of output? Assume now that input prices are (w1,w2). What is the cost function associated with producing y units of output?
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