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Q. Assume that Omar's marginal utility for cups of coffee is constant at 1.5 utils every cup no matter Elucidate how many cups he drinks. On the other hand, his marginal utility every doughnut is 10 for the 1st doughnut he eats, 9 for the second he eats, 8 for the third he eats also so on (that is, declining by 1 util every additional doughnut). In addition, Assume that coffee costs $1 every cup; doughnuts cost $1 each also Omar has a budget that he can spend only on doughnuts, coffee, or both. Elucidate how big would that budget have to be before he would spend a dollar buying a 1st cup of coffee
Illustrate what output would be produced, Illustrate what would total profits be also Illustrate what rate of return would the firm earn in its asset base.
Assume that health insurance begins to cover hip replacement surgeries that everyone interested in getting a hip replacement has health insurance.
Free zone would happen if the central bank lowered the federal funds rate and buy securities on the open market.
Compute the resulting utility if the population were on million higher and one million lower than the optimum.
Assume to latest discoveries in biochemistry significantly lengthen our life expectancy. Illustrate what is the impact on the educational attainment of workers
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The Solow Growth Model. In 2010, Japan was a large open economy with perfect capital mobility that was at its steady state.
Illustrate fiscal policy action might increase investment and speed economic growth.
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