Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1. A worker views leisure and income as "goods" and has an opportunity to work at an hourly wage of $15 per hour.
a. Illustrate the worker's opportunity set in a given 24-hour period.
b. Suppose the worker is always willing to give up $11 of income for each hour of leisure. Do her preferences exhibit a diminishing marginal rate of substitution? How many hours per day will she choose to work?
2. It is common for supermarkets to carry both generic (store-label) and brand name (producer-label) varieties of sugar and other products. Many consumers view these products as perfect substitutes, meaning that consumers are always willing to substitute a constant proportion of the store brand for the producer brand. Consider a consumer who is always willing to substitute four pounds of a generic store-brand sugar for two pounds of a brand-name sugar.
Do these preferences exhibit a diminishing marginal rate of substitution between store-brand and producer-brand sugar?
Assume that this consumer has $24 of income to spend on sugar, and the price of a store-brand sugar is $1 per pound and the price or producer-brand sugar is $3 per pound. How much of each type of sugar will be purchased?
How would your answer change if the price of store-brand sugar was $2 per pound and the price of producer-brand sugar was $3 per pound?
When McDonald's Corporation decreased the price of its Big Mac by 75%, if consumer also purchased french fries and a soft drink, The Wall Street Journal reported that the firm was hoping the novel promotion would revive its United State sales growth.
Under what circumstances will (a) A rise in investment and (b) A rise in money supply cause a large rise in national income?
Explain how incomplete information can cause market failure. Give at least one example of this type of market failure and explain how government intervention has been used to correct the problem.
Read the excerpt below from an article titled "Delta buys refinery, becoming first airline to make own fuel" (Reuters, 5/1/2012). The more context specific your answers are the better. a. What might be the value generating benefits of this vertic..
Assume that just some of the members of a common market like the EU adopt full economic and monetary union, including a common currency. What are the advantages and disadvantages to those members joining the full EMU and to those not?
A New Hampshire resort offers year-round activities: in winter, skiing and other cold-weather activities; in the golf, tennis, summer, and hiking.
Determine what are voluntary export restraint contracts and explain why do some governments force foreign exporters into them instead of just using quotas or tariffs to restrict imports by the same amounts?
Describe why a company in a perfectly competitive market would choose to remain in business, if its profit is zero at equilibrium.
In 1989, Detroit Free Press and Detroit Daily News obtained authorization to combine under a special exemption from the antitrust laws.
Post a memo to explain the factors that contribute to the elasticity of goods. Also incorporate a real-life example of price elasticity of demand, and discuss how it impacts the economy.
Marty's Frozen Yogurt is a small shop that sells cups of frozen yogurt in university town. Marty have three frozen-yogurt machines.
The question requires complete understanding of interactions between production and profit maximization.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd