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Let Joe and Mojo have preferences a 0.25 i b 0.75 i . Assume each agent has an equal endowment of ale and bread of five units. (a) Calculate Joe’s excess demand as a function of the price of ale. (b) Compute the equilibrium by setting setting the excess demand functions equal to zero. Could you have taken a short cut? (c) Compute Joe’s equilibrium Marginal Rate of Substitution. (d) What happens to the equilibrium if Joe has instead 15 units of ale?
Think of an example of the principal-agent that you experienced first-hand or read or heard about. What factors led to the problem? Were there serious adverse outcomes arising from the problem? Based on the course material, what suggestions can you o..
Elucidate how does the theory of the industry provide an integrated framework for the analysis of managerial decision making.
When using regression to combine forecast of the same Y variable derived in with various methods how do you determine the best forecasts to include in the model?
At the beginning of your answer be sure to explain what a price floor is, explain why the government might impose a floor, and who it is intended to benefit.
Unlike the case in the U.S., in many foreign nations, particularly European countries, when an investor acquires a firm: I. The investor is compelled to adhere to existing employment arrangements. II. The investor must raise workers' salaries at a se..
To purchase a house for $80,000, a new couple has $12,000 available for down payment. get a new standard mortgage with 10% APR interest compounded monthly for a 30-year term. What is the effective rate for option 2 per year? Compute the monthly payme..
Why do you think China is now a favor location for so much high technology manufacturing activity? How will China increasing involvement in global trade help that country? How it will help the world develop economies? What potential problems are asso..
What are the advantages and disadvantages of sourcing from China as opposed to India? What types of products or services are best suited for sourcing from India versus China? Why?
What is meant by "retrospective" billing of health care expenses. How can a system of retrospective billing impact health care expenditures
Assume that you are an economic advisor and your focus is on understanding the different types of exchange rate systems. You have been hired to understand the shifts in monetary policy and their influence on monetary policy.
Consider again an economy with the usual required reserve ratio (rr); economy-wide checking (demand deposits) of $400,000; total cash within banks of $100,000; cash held by the public of $36,000; and er = 0.16. Calculate the "real-world" multiplier.
What organizational characteristics facilitate embracing accidents as sources of innovative products and services? Consider 3M and Post-it Notes.
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