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Suppose that the household’s preferences are represented by the utility function U(C0, C1)= 100C0^ 0.5 C1^0.25. If the real interest rate is 5 percent, what is the value of the MRS of this household when it has maximized its two-period welfare?
In a duopoly where possible options are to retain the collusive price (collude) or to lower the price in attempt to increase the firm's market share (cut). Consider the following payoff matrix for a game in which two firms attempt to collude under th..
Household finances are similar in some ways to a nation’s international transactions. Suppose a household consumes (spends) more than its income. What are 3 legal ways it can finance this deficit? Give an example of each. How can a nation that runs a..
Suppose that the US Department of Homeland Security is concerned about the prevalence of airborne biological weapons in large sporting events in the US. Begin by assuming that there is no government policy yet. Consider the market for a system called..
State briefly the basic characteristics of pure competition, pure monopoly, monopolistic competition, and oligopoly.
A manufacturer has been selling 1000 television sets a week at $350 each. A market survey indicates that for each $10 rebate offered to the buyer, the number of sets sold will increase by 100 per week. Round your answers to the nearest dollar. Find t..
An economy has a total of 320 units of labor and 80 units of capital to use on the production of 2 goods. The production functions for the goods are a function of the labor and capital used in each process. Explain why at any point on the PPF, each f..
If Average Variable Costs are constant, what must be true about Marginal Cost? If Average Variable Costs are constant what must be true about Total Cost? If Average Variable Costs are constant, what must be true of Average Total Cost?
Which corporation's settlement obligations are expected to raise its standard total cost per pack by about $.60. Illustrate what effect with this have on its optimal price.
Identify and explain five major factors that affect the demand for starbucks. Illustrate what do you think will happen to these factors over the next year.
Comedian Jay leno once took his show to michigan and gave away free tickest so that out-of-work individuals could attend. He later objected when he discovered that someone tried to sell his free ticket on eBay, and eBay subsequently banned the sale o..
What should the government limit the number of auto and parts makers, the competition for would be limited. Please explain more on this subject.
Consider following couples of variables and discuss whether you expect to find positive, negative, or no correlation between them. In each of the positive and negative examples, indicate whether or not you expect the correlation to be strong or weak.
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