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A girl with a current wealth of Rs 50,000 who faces the prospect of a 25% chance of losing her Rs 26,000 jewellary.suppose her Von newmann-Morgensterm utility index is U(W)= ln(W).what is the maximum premium that she is willing to pay?
A company is considering purchasing a fleet of delivery vans which are available with either a diesel or gasoline fueled motor. The gasoline powered van has an initial price of $29,750, the diesel powered one costs $32,250. Both vehicles have a sa..
Using the rule that the area of a triangle equals one half times the base times the height, calculate the consumer surplus and the producer surplus and the total (social) surplus. Does this outcome attain allocative efficiency.
A monopolist faces a demand curve given by P = 70 - 2Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $6. There are no fixed costs of production.
You are buying a new car for $20,000. You put $2000 down and are financing the balance. You signed a contract for the loan for 4 years. Your loan has an interest rate of 8% interest (APR). You make monthly payments and the interest is compounded m..
Net income from nonfarm unincorporated business, including rent 35 Personal consumption expenditure 398 Imports 170 Undistributed corporate profits 7 Personal taxes 136 a) use expenditure approach to compute GDPb) Calculate NDP c) Calculate NNI
Joe's Barber Shop has a daily total cost function of TC = 100+ 4Q + Q2 and the daily demand for his services is Q = 50 - 2P What is the profit maximizing price that Joe should charge for his services
which requires at $10,000 license fee to use their design. Tooling costs $5000. Materials and consumables (cutting fluids, milling cutters, power, etc) are budgeted at $40 per product. Your company applies an overhead rate of 25% on all direct cos..
McIntosh and Golden Delicious apples is 0.8, between apple and apple juice is 0.5, between apples and cheese is 0.4, and between apples and beer is 0.1 What can you say about the relationship between each set of commodities
a. State the per worker production function b. Given that (A = 4) the savings rate is 0.3, the population grows at 0.01 and the depreciation rate is 0.05. Calculate the steady state capital stock per worker and investment per worker.
Your firm designs training materials for computer training classes, and you have just received a request to bid on a contract to produce a complete set of training manuals for an 8-session class. From previous experience, you know that your firm f..
the state of glottamora has $100 million remaining in its budget for the current year. one alternative is to give glottamora a one- time tax rebate. alternatively, two proposals have been made for state expenditures of these funds.
Given population = 500, Population 16+ and non-institutionalized = 400, People employed full or part-time = 200 People unemployed and actively seeking work = 20 People who have quit seeking work due to lack of success = 10Part-time workers seeking fu..
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