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You have 7 projects. Each project cost you $1,000. Even if you have $1900, you can only invest in one project. These projects have different revenues. Project A will generate $3000 revenue. B will generate $1200 revenue. C will generate $800 revenue. D will generate $900 revenue. E will generate $1500 revenue. F will generate $2100 revenue. G will generate $600 revenue.
Question: Make an optimization table (Marginal cost, Marginal Revenue, and Profit columns must be provided) then according to the table, use the level-optimization and marginal-optimization method to find the optimal choice.
Using production theory as a basis, is the CEO correct in his assumption that lazy workers or ineffective supervisors are to blame for the decline in productivity? What other explanations might be possible?
Suppose that the Government wants to augment the level of national savings in the economy and institutes a policy to reward savings behavior. Hence, borrowers face a real interest r as always, but lenders receive r(1+s) on their savings, where ‘s’ is..
Considering the circular flow model (for a four sector economy), if leakages exceed injections at some income level, we can know that the level of aggregate demand also must exceed the level of aggregate supply we can know that the system cannot be i..
Assume that a monopolist has a demand curve given by P=1500-4Q, and TC= 100 + 5Q2 with MC=10Q. Calculate the dead weight loss. Calculate the consumer surplus and producer surplus.
In the economy of Panicia, the monetary base is $1,000. People hold a third of their money in the form of currency (and thus two-thirds as bank deposits). Banks hold a third of their deposits in reserve. What are the reserve–deposit ratio, the curren..
Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Suggest how fiscal and monetary policy can move those numbers to an acceptable le..
Illustrate what salary would be required for the soldiers to be as well off as with the allowance.
You’ve recently learned that the company where you work is being sold for $290,000. The company’s income statement indicates current profits of $9,000, which have yet to be paid out as dividends. Assuming the company will remain a “going concern” ind..
What makes it conceivable for a country to experience constant debt to GDP ratio and at the same time experience continual government budget deficits is: Government budget surplus or deficit is: A rise in the government budget deficit will have a :
Opponents of the minimum wage point out that the minimum wage:
A corporation just issued a 10 year, zero coupon bonds having a YTM of 10%. Under current tax law, how much interest can the corporation deduct in the first year?
Public health information can be broadcast at a cost of $100. Public health information is a pure public good, in that many people can use the information simultaneously and preventing people from using the information is very difficult. One group of..
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