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Consider a two consumer exchange economy. Consumer 1 and consumer 2 have utility functions given by:u2=xy These consumers are initially endowed with: Compute each consumers demand functions for goods x and y.
Valuation relates to product liability because a judgment (estimate) must be made regarding the expected cost of defective products.
Long-Run Industry Supply Why does the long-run industry supply curve for an increasing-cost industry slope upward? What increases costs in an increasing-cost industry?
Why do you think the private sector failed to meet this need? Do you see any drawbacks to government intervention in this area?
How does the answer depend on the model of trade?
Can you see a relation between Smith's growth model and his market model? Would the growth model work if the forces of the market did not operate?
What are some other characteristics of this market structure
Suppose a car wash firm that has 3 workers is able to wash 120 cars per day. When it adds one more worker, it is able to wash 152 cars per day in total. Suppose each car wash costs $15. Then the marginal revenue product for the 4th worker is
Given the following annual information about a hypothetical country, answer questions a through d. Billions of Dollars Personal consumption expenditures $200 Personal taxes 50 Exports 30
If the cost of capital for both methods is 9 percent, which method should be chosen? Why?
Bart Simpson spends his day either skateboarding (leisure) or babysitting his sister Maggie (work), for which his mom (Marge) pays him an hourly wage of w. Marge has decided to increase Bart's hourly wage. For each of the following cases, determine w..
Chad's income went from $1000 per week to $1500 per week.As a result he increased his consumption of steak from 1 pound aweek to 3 pounds a week. Based on his consumption patterns,what is the income elasticity of steak for Chad.
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