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Discussion 1.
Discuss how the utility-maximization model helps highlight the income and substitution effects of a price change. Provide an example.
Discussion 2.
What real-world examples do you have of the income effect? Why is it important for business managers to have a solid understanding of the income effect?
Discussion 3.
Why is it important for business managers to have a solid understanding of the law of diminishing marginal utility?
Short essay identifying and describing the conditions you observed for a business in Monopolistic Competition or a Differentiated Oligopoly who differentiates.
You decide to go to your favorite fast food restaurant and have only $5 to spend. How does customer service at this restaurant influence your decision?
Identify and describe (5) key characteristics of a monopolistic competition market. Define a cartel. Give 3 examples of a cartel in the business world.
An oversupply of physicians in many urban regions contrasts with continuing problems of access in rural and inner-city areas. Why does the mal-distribution of physicians persist in spite of the number of physicians graduated?
The members of the Board of the product are scheduled to meet with the Trade Minister of Industria. The Board is interested in convincing the Government of Industria to establish closer economic links with Atollia. Based on the regression results, wh..
Portfolio Risk and Return. Suppose that the S&P 500, with a beta of 1.0, has an expected return of 13% and T-bills provide a risk-free return of 4%. How would you construct a portfolio from these two assets with an expected return of 8%? Specially wh..
The sample mean was calculated to be 278. What is the width of the 99% confidence interval for the population mean?
a) What is the optimal production level, Q*, and what is the profit at Q*? b) A 30% tariff is imposed on imported solar panels. Assuming demand stays the same,
An executive-search firm has shown that job search time and higher salaries are directly correlated. They have shown that for every $10,000 of additional compensation the search will take an additional month. Is a month spent in searching rather than..
Discuss why users try to break into other users computers and information systems.
Participate in a discussion with your classmates regarding your role in the money multiplier process. Review the “EYE on Your Life” caption titled, Money and Your Role in its Creation, on page 281 in the textbook. Discuss and describe the effect you ..
Suppose that nominal GDP in year 1 is 200 and nominal GDP in year 2 is 242. Assume that inflation is 10 percent per year. How fast did the economy grow between these two years?
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