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Maria is the only person in an island, and she has an endowment of 14 units of X and 7 units of Y.
Her utility function is: u(X, Y ) = ln(X) + 5 ln(Y )
a. Find the marginal utility of X and Y.
b. Find the marginal rate of substitution when Maggie consumes all her endowment.
Explain the relationship between Actual National Income (Y) and Desired Aggregate Expenditure (AE = C + I) and how this creates equilibrium National Income?
What is the history behind the fight against deforestation? Who spoke out against it? What role did the population of Brazil play in changing Paragomias
Compared to perfect competition, a monopoly will produce ________ output, and charge a ________ price. If different markets for a product produced by a monopolist can be separated and if the elasticity of demand differs between the two markets, then ..
If the Bank of Canada sells 100 million worth of bonds to the public in an open market operation. What level of output will the firm choose? Is the firm making a profit.
Would integration between the following types of firms constitute a horizontal, a vertical, or a conglomerate merger?
A company is considering two alternatives for manufacturing a certain part. method R will have a first cost of 40,000, an annual operating costs of 25,000 $, and a 10,000 $ salvage value after its f8ve year life. Method S will have an initial cost of..
Where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yards sold per year. Suppose that Kalamazoo's marginal cost is $20 per cubic yard and its avoidable fixed cost is $100,000 per year. what is its profit-maximiz..
Some estimates for the cement industry suggest the following relationship between capacity and average cost: Capacity (thousands of tons: 250 500 750 1000 1,250 1,500 1,750 2,000 Average Cost: 28.78 25.73 23.63 21.63 21.00 20.75 20.95 21.50. Assume t..
This has led to a lower cost of capital for business but higher market volatility. Should these markets now be regulated globally?
How can the three basic assumptions of human behavior ( people are rational, people respond to incenititives and optimal decisions are made on the margin) be called the backbone of supply and demand?
When files are deleted in an operating system the space is typically returned to the free list but the blocks are not erased. Describe how a system can be designed so that the data is not recoverable.
Flora's Flowers operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue.
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