Before the income is spent, it can either be kept in money or bonds. Money yields no interest. Bonds yield a yearly interest of 4%, but a transaction fee of 18 has to be payed each time bonds are sold. Use the BaumolTobin model of money demand to ..

given the following variables in the open economy aggregate expenditure model, autonomus consumption=200, autonomus investment=200, government spending=100, export spending=100, taxes=0, marginal propensity to consume=0.8

Your utility if a function of income (i), given by: \(U = 10i\) as long as i is less than or equal to 300. If I is greater than 300, your utility is a constant equal to 3,000. Suppose you have a choice between having an income of 300 with c..

Sue consumes only two goods, food and clothing. The marginal utility of the last dollar she spends on food is 12, and the marginal utility of the last dollar she spends on clothing is 9. The price of food is $1.20/unit, and the price of clothing is..

Suppose that a firm sells in a highly competitive market, in which the going prince is $15 per unit. its cost equation is c=$25+.25Q^2 find the profitmaximizing level of out put for the firm. determine its level of profit.

Suppose you own a restaurant that serves only dinners. You are trying to decide whether or not or rent out your dinning room and kitchen during mornings to another firm, the Breakfast Club Inc., that will serve only breakfast.

Your cat's summer kittycottage needs a new roof. You are considering the following two proposals and feel a 15year analysis period is in line with your cat' remaining lives. (There is no salvage value for old roofs.) Construct a choice table..

State carefully the ceteris paribus assumption in this case. Do you think this simple regression of Y on X satisfies that assumption? Why or why not?

Multiplicative decomposition method

Fred Smith owns a British Consul, a security which pays the equivalent of $1000 U.S. each year on September 15, forever. Fred has recently considered selling the security. The current interest rate is 10% a. What is the minimum sales price he must..

(Y) Dollars per unit 3.00, 4.50, 5.00, 6.00, 8.00 (X) Units per Period 5,000  8,000,  WHAT IS THE MONOPOLIST'S PROFITMAXIMIZING OUTPUT  At the profitmaximizing output rate, what are the monopolist's average total cost and axerage revenue

quantity price/dollars total revenue total variable costs dollars total cost dollars 0 22 0 0 50 20 20 16 66 2 19 38 3 18 54 45 95 4 17 68 59 109 5 16 80 75 125 6 15 90 93 143 7 14 98 112 162 8 13 104 140 190 9 12 108 180 230 10 11 110 230 280
