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Karen's money income is $180, the price of X is $3, and the price of Y is $1.5. Given these prices and income, Karen buys 40 units of X and 40 units of Y. Call this combination of X and Y bundle C. At bundle C, Karen's Marginal Rate of Substitution between X and Y is 1/2. Is Karen maximizing her satisfaction level at bundle C? Explain. If not, how should Karen change her consumption to maximize her satisfaction level?
A Material Requirements Planning (MRP) is most valuable in industries where a number of products are made in batches using the same productive equipment and with companies involving
Tater and pepper Corp reported sales for 2015 of 24 million. Tater and pepper listed $5.7 million of inventory on its balance sheet. How many days did tater and pepper inventory stay on the premises? How many time per year did tater and pepper invent..
Trade liberalization leads to a "race to the bottom" in environmental standards. Make the argument and counter-argument, present the following data;
Suppose that inverse demand is given by p(Q) = a-bQ, where Q is total quantity supplied in the market. There are two firms in the market, each with a cost function of c(q) = cq. What is the profit function of each firm? Compare the output and price t..
The president of the United States announces in a press conference that he will fight the higher inflation rate with a new anti-inflation program. Predict what happen to interest rates if the public believes him.
Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine. The company could keep it in inventory for possible future product and estimates that the reservation value is $250..
The exchange rate between the U.S. and Japan is floating, e.g. determined by the market. Suppose the U.S. government imposes import quotas on Japanese products. The quotas increase spending on domestic products. How does this affect the U.S. macro ec..
what would your advice be to Congress? You must include the implications (the consequences to business and workers) in your analysis?
Gene has the following utility function: U = XY + 2Y, the Px = $4, the Py = $1 and I=$6. Is the MRSx,y increasing, decreasing, or constant with respect to X? What is the slope of the budget constraint? Find the optimal X and Y.
A firm operating in a monopoly market knows that the demand curve for its curve is given by P = 1,000 -2*Q, and there are no fixed costs of producing of producing the good and that the marginal cost of producing the good is given by the equation MC =..
Using the standard Solow growth model (i.e., without technological change as graphed below), draw and describe the effects that war involving high casualties has on capital per worker. Assume this war occurs on foreign soil and thus does not damage t..
How might protective tariffs reduce both the imports and the exports of the nation that levies tariffs? How might the import competition lead to quality improvements and cost reductions by American firms?
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