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Pat eats eggs and toast for breakfast and insists on having three pieces of toast for every two eggs he eats. Derive his utility function. If the price of eggs increases but we compensate Pat to make him just as "happy" as he was before the price change, what happens to his consumption of eggs? Draw a graph and explain your diagram. Does the change in his consumption reflect a Substitution or an income effect? (Make up price and income)
The U.S. government pays an economist at the U.S. Department of Commerce $50,000 in salary in 2006. The economist then retires. In 2007, the government pays him $30,000 in retirement benefits. The 2006 payment is included in 2006 GDP as government pu..
Suppose the firm chooses this input combination. What is the firm's short run cost function? What are the firm's fixed costs? What are the firm's variable costs?
Why is a point below the production possibilities curve less efficient than a point on that curve?
The local government does not directly charge their residents for collecting garbage. However, the city faces increasing marginal costs of MC=1+0.6Q per ton. Residents' market benefit for garbage is MB=250-2.2Q per ton. How much garbage will resident..
A typical university football program requires alumni to join one of several booster clubs (each club gets seats in different parts of the stadium) before the person can buy season tickets. What has this got to do with consumer surplus?
For depreciation purposes, the purchase cost of the warehouse is divided into $100,000 in land also $400,000 in building. The building is a CCA Class 1 asset also is depreciated accordingly.
A clinic has incremental costs per case of $10 and overhead costs of $100,000. It faces a price elasticity of demand of -2. What is the clinic’s profit-maximizing price? (Round to the nearest whole dollar)
Illustrate that the tax be acceptable in spite of the deadweight loss. What tax revenue will be generated.
In case of conflicting IP rights, could firms bargain to attain efficient outcomes. Is re room for entry if consumer welfare is not being served.
Elucidate what the equilibrium interest rates for the federal funds rate the government bond rate also the private bond rate are also Illustrate what the equilibrium level of income is.
Elucidate what would the seller's cost of capital have to be in order for the discount to be cost-justified.
Illustrate what happens if the insurance plan reduces the deductible to zero. What happens if the coinsurance rate is increased.
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