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Suppose that good X is on the horizontal axis and good Y is on the vertical axis. Good X costs twice as much as good Y. Ann chooses a bundle that takes up all of her budget. However, the MRS of X for Y at this bundle is greater than 2. Please illustrate this situation using a budget constraint and an indifference curve.
Terrorism is essentially a form of psychological warfare. One of the costs of terrorism is the cost to democracy, with governments justifying violations of individuals’ rights on the grounds of national security. Conditions in Pakistan provide an env..
About 95 percent of the world's population lives outside the United States, but many U.S. companies, especially small businesses, still do not engage in global trade. Why not? Do you think more small businesses will participate in global trade in the..
Currently a heating unit for a small building is very old and inefficient. The owner is contemplating on replacing it with a variable air volume system that costs $100,000 and will save 450,000 kWh each year. Base your decision on the (a) present wor..
At some levels of output Acme's average total costs are less than Generic's, but at some levels of output Generic's average costs are less than Acme's.
Assume that two firms sell differentiated products and face the following demand curves: q1 = 15 − p1 + 0.5 p2 and q2= 15 − p2 + 0.5p1 (assume marginal cost is zero) Derive the best response function for each firm. Do these indicate that prices are s..
Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees? In many smaller cities all McDonald’s outlets are owned by the same franchisee. Why is (or isn’t) this fact ..
We do, however, have free trade in corn, which is fermented and distilled to make ethanol, and accounts for approximately 55% of the cost. Elucidate the effective rate of protection on the process of turning corn into ethanol.
Discuss and explain similarities and differences in the roles economists play as policy makers and as scientists.
how much does the total amount of deposits in the banking system increase? By how much does the money supply increase. In the u.s. today, money includes which of the following items federal reserve bank notes in citibank's cash machines.
Explain why does a newspaper dispenser open to a stack of newspaper and essentially "trusts" a consumer to take just one copy.
Find the optimal consumption bundle. Suppose that the consumer experiences an increase in real wage. Find the new optimal consumption bundle and determine the income and substitution eects. Clearly indicate both eects on consumption and leisure chose..
Identify the various actors of intergovernmental relations involved in the case. In general, what does this case tell you about the complexity of IGR in this country and the work of public administrators in the 21st century?
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