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Consider the optimal choice of labor and leisure discussed in class and the text. Suppose a consumer works the first 8 hours of the day at a wage rate of $10 per hour, but receives an overtime wage rate of $20 for additional time worked. a. On an optimal choice diagram, draw the budget constraint. (Hint: it is not a straight line.) b. Draw a set of indifference curves that would make it optimal for him to work 4 hours of overtime each day.
describe the amount of output produced by Stone Company. How much profit will Stone Company make when it acts as a monopolist.
Assuming that the current production rates are maintained at the three congress plants, that unusual should management select.
Representatives were to logroll (trade votes) to get their preferred policy to pass, what would be the result. What are the total benefits from each project.
Elucidate in writing to what market your derivation brings equilibrium and how it accomplishes this. What are the principal differences between flexible and fixed exchange systems.
Show an expression for average cost. Derive an expression for marginal costs. Is there any range of production characterized by scale of economies.
Explain the difference between Macroeconomics and Microeconomics. Also explain how economics is used as a social science and as a policy tool.
A company currently sells 60,00 units a month at $10 every unit. The variable cost every unit is $6. The company decided to raise the price about 10%.
How do you recover an investment when the residual value is significantly less than the loan value.
Explain what is the maximum amount of new loans that this bank can make. Show in column 1 how the bank's balance sheet will appear after the bank has lent this additional amount.
Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, illustrate what was the real interest rate you paid.
What criteria would you apply to determine where such a policy is or is not successful. Judging from your own stated criteria, was Japan's exercise successful.
A few years ago, a construction manager earning $70,000/ year working for a regional home builder decided to open his own home building company.
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