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The Utility curve, iso-utility curve, showes\every combination of goods (or features) that provide consumers with the same level of satisfaction. Why is it important for managers to understand that various combination of features can provide the same level of satisfaction and how do they use this information? Therefore, firms that wish to become successful, should focus on doing what? how is this different from the common view that companies get rich by "fooling" or "cheating" their customers? Why don't firms try to cheat their customers?
Suppose the weekly demand for garden benches is Qd = D(P ) = 450 − 2P. What price must they charge if they want to sell 100 benches per week? What price must they charge if they want to sell 150 benches per week? What is Noah and Naomi’s inverse dema..
One of the conclusions from Akerlof's paper titled "The Market for Lemons" was:
An individual is borrowing $175,000 for a 20 year loan at 3.95% per year compounded monthly. Immediately after the 104th monthly payment, the home owner plans to sell the house. How much money is owed back to the bank? What is the effective annual r..
The time for a new instructor to create a Blackboard test question and check it out is 219 minutes. Determine the time in minutes or fraction thereof for him to create the 39th question if the average coefficient of learning is 0.77.
When the unemployment rate is_____ than the natural unemployment rate, real GDP _______. At a business cycle trough, cyclical unemployment is ____ and at a business cycle peak, cyclical unemployment is _____.
This chapter argues that saving and spending behavior depend in part on wealth (accumulated savings and inheritance), but our simple model does not incorporate this effect. Consider the following model of a simple economy: C = 50 + 0.8Y + 0.1W. What ..
Do you think the government, using both fiscal policy and monetary policy, faces any trade-offs in trying to control for inflation vs. unemployment. What do you believe is more of a problem towards long-term economic growth: persistent inflation or u..
Research, identify and discuss some of the environmental issues faced by business and society as well as at least two strategic approaches organizations are using to respond to these issues.
An L – shaped structure can be built for the service contemplated at a cost of $180,000, but an addition to this building will be necessary for storage, fifteen (15) years hence, at a cost of $100,000. A T-shaped structure can be built at the present..
Consider a closed economy. Assume that goods prices are fixed in the short-run and that firms produce whatever they need to meet demand. Assume that money demand is negatively related to the nominal interest rate and positively related to the level o..
What are the variable costs that Taco Bell faces? Consider the changes that the leadership in this article is seeking to make. What do you predict will be the effects on Taco Bell’s profits relative to its competitors if they are successful ahead of ..
Regarding the Sherman Act: A. Section 1 makes collusion illegal. Is this socially desirable? Are there any conditions under which collusion can be socially desirable? Explain. B. Section 2 makes it illegal for a firm to attempt to monopolize a market..
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