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In the economy of Mungo, discussed in your workbook, there is a third person called Ike. Ike has a red income of 40 and a blue income of 10. (Recall that blue prices are 1 bcu [blue currency unit] per unit of ambrosia and 1 bcu per unit of bubblegum. Red prices are 2 rcus [red currency units] per unit of ambrosia and 6 rcus per unit of bubblegum. You have to paytwice for what you buy, once in red currency, once in blue currency.) If Ike spends all of his blue income, but not all of his red income, then it must be that:
(a) he consumes at least 5 units of bubblegum.
(b) he consumes at least 5 units of ambrosia.
(c) he consumes exactly twice as much bubblegum as ambrosia.
(d) he consumes at least 14 units of bubblegum.
(e) he consumes equal amounts of ambrosia and bubblegum.
q.as ceo of firm a you and your management team face the decision of whether to undertake a 200 million rampd effort to
where P represents price and A is the number of weekly advertisements. Presently the theater advertises 125 times per week. Assuming this is the only theater in town, and its marginal cost, MC, is equal to zero, Determine the profit maximizing ticket..
When a nation's currency appreciates, it purchases ______ units of a foreign currency and it is said to _______ .
Buchanan went into a store in Los Angeles. When celebrities Jennifer Lopez and Ben Affleck entered the store to shop, the manager asked Buchanan to leave, but did not give him a reason why he was asked to leave. Two Los Angeles County sheriff’s deput..
Briefly explain how Airbus and Boeing develop their 20-year forecasts. Note the factors that influence projected air travel growth; some factors affect the demand curves while others influence supply. Be certain to distinguish between the two. Provid..
How would a gradual increase in the percentage of fathers who stay home to care for young children while their wives continue working.
Suppose the average household in a state consumes 800 gallons of gasoline per year. A .20 tax is introduced coupled with a $160 annual tax rebate per household. Will the household be better or worse off?
If a firm can sell its product for more than its fixed costs, but not for more than its totals costs:
A state highway department is trying to decide whether it should “hot-patch” a short section of an existing county road or resurface it. If the hot-patch method is used, approximately 300 cubic meters of material would be required at a cost of $700 p..
For several decades the labor force participation rate of women increased steadily but average hours worked per employed woman decreased steadily. Holding all other factors constant could rising wage rates of women explain both phenomena? Explain.
During the business cycle, we can expect supply side economic growth:
Discuss whether each of the following actions create any postive or negative externailty??
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