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Bob consumes only apples and bananas. He always prefers more apples to fewer, but he gets tired of bananas. If he consumes fewer than 29 bananas per week, he thinks that 1 banana is a perfect substitute for 1 apple. But you would have to pay him 1 apple for each banana beyond 29 that he consumes. His indifference curve that contains the consumption bundle with 30 apples and 39 bananas also contains the bundle with 21 bananas and how many apples?
Please answer using graphs and all the details.
Consider that, in this case, we 1st add (marginal) costs, not quantities, since these are the costs associated with each t-shirt.
An individual wishes to deposit an amount of money now and $100 every six months so that at the end of five years $1,500 will have been accumulated. With interest at 4% per year, compounded semiannually, how much should be deposited now?
Which of the following products and services are likely to encounter adverse selection problems: golf shirts at traveling pro tournaments, certified gemstones from Tiffany's graduation gift travel packages, or mail-order auto parts? Why or why not?
The Department of Justice concluded that satellite radio is not a market in and of itself while reviewing XM and Sirius merger. What other kinds of competitors did the DOJ include in the market? Discuss.
Suppose i = 3%. Find the value one month before the first payment of a level annuity-due paying $200 at the beginning of each month for five years.
Suppose in 2012 you buy 3% coupon rate, $100 face value bond for $100 that has 2 years left till maturity. If in 2013 interest rates decrease to 1%, what will be the price of your bond and what will be your rate of return if you decide to sell it?
Since November 2011, the Reserve Bank has lowered the cash rate on eight separate occasions from 4.75% to 2.5%. Clearly, the Bank has become far less concerned about inflation and is giving a much greater emphasis to unemployment in its policy reacti..
The inverse demand curve for widgets is P = 130−2Q. There are two firms, A and B, who produce wid-gets. Each firm has a constant marginal and average cost of producing the good that equals 10. What is the Cournot-Nash equilibrium? You need to solve t..
The Dominick's supermarket chain sells Nut Flakes, a popular cereal manufactured by the Tastee cereal company. Demand for Nut Flakes is 1.000 boxes per week. Dominick's uses an interest rate of 25 percent per year for holding cost and incurs a fixed ..
Which of the following is/are NOT (a) characteristic(s) of the Bismarck model?
The price elasticity of demand for imported mineral water is estimated to be ?0.20 over a wide interval of prices. The federal government decides to raise the import tariff on foreign mineral water, causing its price to rise by 20 percent.
China will almost certainly overtake the US in terms of GDP within a decade or so. What does that tell you about the standard of living of Chinese people compared to those in the US?
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