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A consumer of two goods faces positive prices for both goods and has positive income. Her preferences over consumption of good 1 and good 2 are represented by the following utility function:u(x1; x2) = min {2x1 + x2; x1 + 2x2}a. Draw the indierence curve for u(x1; x2) = 20.b. For what values of p1/p2 will the optimum be x1 = 0?c. If neither x1 and x2 is equal to zero and the optimum is unique, what must be the value of x1/x2?
Suppose demand for HP printers is estimated to be Q = 1000 - 5p + 10pX - 2pZ + 0.1Y. If p = 80, pX = 50, pZ = 150, and Y = 20,000; answer the following: a) What is the price elasticity of demand for HP printers
An asset with an original cost of $100,000 and a current book value of $20,000 is sold for $50,000 as part of a capital budgeting project. The company has a tax rate of 30%. What is the after-tax cash flow derived from the sale of the asset
market supply is Qs= 4P -110 ( both in millions) where P isthe monthly price of telecommunication services. The senator is considering tax reform that will cut tax rates,leading to a supply function under the new tax policy of Qs =4.171P - 110.
If the price or cost of college and university education increased by 10 percent and, at the same time, incomes also increased by 10 percent, what would be the change in demand for college and university education
Assuming that this 50 percent overtime-pay premium is newly required for all work beyond eight hours per day, draw a budget constraint that pictures a strategy of cutting hourly pay so that, at the original hours of work.
Projected government revenues from blood sucking income andconsumption taxes, not to mention pick-your-pocket duties andexcise tases is $243 billion for 2008-2009 fiscal yeat. What would make the 08-09 budget a surplus
Automotive Rebuilders, Inc., is considering a new automated assembly line to automate assembly of rebuilt alternators. The new line can be installed for $525,000 today and will have a life of 9 years until technological obsolescence.
Point A 4m barrels oil 200 tonnes lumber Point B 6m barrels oil 150 tonnes lumber a) If we had a PPF with the goods oil and lumber, how would be measure the MC of oil between points A and B
suppose an economys real gdp is 38000 in year 1 and 41200 in year 2. what is the growth rate of its real
The revenue and cost functions for producing and selling quantity x for a certain production facility are given below. R(x) = 16x - x2 C(x) = 20 + 4x a) Determine the profit function P(x). b) Use Excel to graph the functions R(x), C(x) and P(x) for t..
the purpose of this excise is to have you confirm empirically the relationship that theoretically should occur among
The short-run total cost curve of a firm in a hypothetical market is given by: STC=10Q2 + 4Q + 100 with short-run marginal cost given by SMC=20Q+ 4. There are 100 firms in the market. Market demand is Qd = 500-Pmkt
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