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Given the consumer maximizing problem subjest to consumption, the firm's maximizing problem subject to revenue as a function of labour demand, and the government's budget as G=T. how do solve for competitive equilibrium and pareto optimality when there is an externality affecting consumption?
Suppose the market for ice cream cones is made up of three consumers:: Josh,Daisuke, and Tim. Use the information in the following table to construct the market demand curve for ice cream cones.
Do you think it is correct for the European Commission to restrict mergers between American companies that do business in Europe? (For example, the European Commission vetoed the proposed merger between WorldCom and Sprint, both U.S. companies
Do you think the U.S. Post Office should be protected from competition? What about a pharmaceutical company that has just spent millions to develop a life-saving drug? Discuss your reasons.
Suppose Morgan Guaranty, Ltd. is quoting swap rates as follows: 7.75 - 8.10 percent annually against six-month dollar LIBOR for dollars and 11.25 - 11.65 percent annually against six-month dollar
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
Considering factors such as food supplies, population growth, water availability and renewable energy, compare the marginal costs and the marginal benefits of global warming and describe what an ‘environmentally sustainable' economy would be.
Rob has an income of $10,000 this year and he expects an incomeof $13,200 next year. He can borrow and lend money at an interestrate of 10%. Consumption goods cost $1 per unit this year and thereis no inflation.
Distinguish between the Federal funds rate and the prime interest rate. Why is one higher than the other? Why do changes in the two rates closely track one another?
Using the marginal productivity theory of labor demand to forecast the impact on the company's employment level of following events. Describe why the change in employment occurs and show it in a graph.
Illustrate what conditions is it possible to increase production of one good without decreasing production of another
suppose natasha currently makes 50000 per year working as a manager at a cable tv company. in one she will quit her job
Elucidate explain why after such unprecedented economic growth, technical advance economies still experience economic cycles and stagnation.
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