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An economy produces only agricultural products (x) and manufactured goods (y). A quarter of the land in the country is arid and not suitable for agricultural products. Therefore, if half of the arid land is not used at all:
(a) The economy could be productively efficient when the opportunity cost of x (agricultural products) is infinite;
(b) The economy could be productively efficient when the opportunity cost of y (manufactured goods) is zero;
(c) The economy could be productively inefficient with infinite opportunity cost for the production of x (agricultural products);
(d) The economy could be productively inefficient with infinite opportunity cost for the production of y (manufactured goods).
A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The company forecasts that the revenue will be $190 million in the first year, but will decline by $2 million every year for the next 3..
How is an investor's choice of which security to purchase related to his degree of risk aversion?
q.before the gulf war kuwait had the capacity to produce a certain amount of oil from its oil wells. after the war it
An intermediary forms combining funds from huge numbers of savers. Each saver derives Happiness(H) from Income(I) according to the function: H= 31I -I^2 If there is competition between intermediaries, and if the cost of intermediation is $.50 per $10..
Elucidate the effects of an increase in business investment on the short-run macroeconomic equilibrium.
Evalute the area of consumer surplus and producer surplus for the profit maximizing monopoly.
Assume that demand for a commodity is represented by the equation P = 10 – 0.2 Q d, and supply by the equation P = 2 + 0.2 Qs where Qd and Q s are quantity demanded and quantity supplied, respectively, and P is the Price. Use the equilibrium conditio..
The consumer likes orange juice and cranberry juice but he or she does not like to have them together. In another words, consumer prefers 8 units of orange juice and 2 units of cranberry juice or 8 units of cranberry juice and 2 units of orange juice..
Is the industry or industries in which the firm operates conducive to abnormally high rates of return.
A financial instrument backed by a collection of mortgages is called a(n):
Recall from Exercise Ul the population of animals fighting over a food source worth 200 calories. Assume that, as in part (b) of that exercise, the cost of a fight is 150 calories per fighter. Assume also that a third phenotype exists in the populati..
The price-quantity relationship has been estimated for the new prostate cancer blood test: Q = 4,000 – 20 × P. Use a spreadsheet to calculate the quantity demanded and total spending for prices ranging from $200 to $0, using $50 increments. For each ..
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