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Alice and Bob survive on hamburgers and salads. Alice's utility function is UA = hA(sA - 1) where hA and sA are her consumption of hamburgers and salads respectively.
Bob's utility function is UB = (hB - 1)2sB where hB and sB are his consumption of hamburgers and salads respectively. Let p be the price of hamburgers measured in salads. Alice is endowed with one salad and two hamburgers. Bob is endowed with six salads and two hamburgers. Find the competitive equilibrium.
Assume Okun's law holds also a one percent (%)age point rise in the unemployment rate reduces real output by 2% of full-employment output. The expectations-augmented Phillips curve.
illustrate what will be the effect of an excess of planned investment over saving in a private closed economy with unemployed resources.
If you were a manager of a large manufacturing company and decided to offshore labor-intensive production to another country, how would you justify the decision to your employees and the community
This exercise presents a simple example to elucidate how exchange-rate conversions can produce misleading results and how the PPP methodology works.
q.explain how do changes in demand affect prices?explain how do changes in supply in one market affect other
q.the husband of miss young is a monopolist with constant marginal costs of 50 that can sell to three groups of
Textile Workers of America is planning to strike for higher wages. Management predicts that if strike is successful, cost of labour will increase $100 per day. If strike is successful, how would this affect decision in part a to purchase a textile..
what single payment at the end of year 5 is equivalent to an equal annual series of payments of $800 beginning at the end of year 3 and ending at the end of year 12? The interest rate is 8% compounded annually
Illustrate what are the advantages of using capital in the production process. What is meant by the term "division of labor".
Illustrate the significance of resource pricing explain rule or criteria of employing for resources under pure and perfect competition.
Assuming that the current production rates are maintained at the three assembly plants, which alternative should management select?
What is the impact on the long run adjustment due to this condition. First, look at the impact of the market and then the single firm. What does it do to economic profits or losses, then what happens in the market.
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