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Question 1: Choose 2 of your favourite brands and rank them in order of preference using ordinal utility. Why you chose and how you prefer one more over the other?
Question 2: In your opinion, which is better- Cardinal or Ordinal? And why?
Suppose the price of good 1 is $2, and the price of good 2 is $1. Derive Pete’s demand function for good 1 (as a function of income). Is good 1 normal for Pete? How about good 2? Plot the Engel curve for goods 1 and 2 (with income on the horizontal a..
1. Calculate the depreciation expense to record on the books for Year 2. 2. Calculate the net book value of the equipment reported on the balance sheet
Why might M1 and M2 grow at very different rates during a given year? If excessively rapid growth in the money supply is associated with all inflationary episodes, why do central banks ever allow the money supply to increase so rapidly?
How about if the test comes back positive (the test says "disease") -- how likely is he to actually have disease D then?
Prior to liquidating their partnership, Fowler and Brooks had capital accounts of $29,000 and $55,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. Determine the amount r..
Maria has decided to always spend one-third of her income on clothing.
The company uses the straight-line method of depreciation. The book value of the equipment at the beginning of the third year would be.
Define Internal Rate of Return (IRR). What is the assumed Net Present Value in calculating IRR? Why is it not appropriate to compare today’s outflow of cash (cost of the project) directly to future cash inflows? If the Weighted Cost of Capital (WACC)..
Explain the entities affected by industrial regulation in terms of marketplace structure.
Suppose u(c, c') = ln c+β ln c' , there exists N consumers and each consumer lives for 2 periods. In each period they receive an endowment y, y' and are taxed t, t'. Derive the lifetime budget constraint for both the consumer and government. Define e..
The traditional management style of hospitals has been hierarchical and internally focused. What are three important challenges that face hospitals to accommodate new payer and consumer expectations?
Assume we are examining the market for luxury automobile in the USA. In separate graphs, graph what occurs when each of the following happens For each graph explain what is happening and why. Consumer’s income increases.
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