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Carl starts out with 20 cords of firewood and only 5 bushels of corn and has a MRS of 1 firewood for 3 corn. Debbie starts with 25 bushels of corn and only 10 cords of firewood and has a MRS of 2 for 1 (2 firewood for 1 corn). How can both be made better off through the trade? Illustrate with a graph.
Which of the following criteria must be satisfied when selecting a policy? instrument?
Show mathematically that for any upward sloping SRMC, SRATC is strictly convex, crosses the SRMC curve at the lowest point on the SRATC curve, and the SRMC curve is rising at that point.
Assume that the following equations characterize a large open economy: Where NX is net exports, CF is net capital outflow, and e is the real exchange rate. Solve these equations for the equilibrium values of C, I, NX, CF, r, and e.
If bagels and doughnuts are substitute goods, then which of the following is likely to occur if the price of bagels is reduced?
Emma consumes only apples and milk. She does not have any income, but she inherited an apple tree and a single cow from her grandfather. The apple tree produces 100 apples each year and the cow gives 160 gallons of milk. Suppose that Emma can freely ..
Your student association is looking for an auditorium to rent for an all-day conference. The university's Performing Arts Center is vacant on that day, so the association wants to rent it. If you rent the Center, what will be the university's margina..
The actual reason that banks must hold required reserves is: LO33.2 a. To enhance liquidity and deter bank runs. b. To help fund the Federal Deposit Insurance Corporation, which insures bank deposits. c. To give the Fed control over the lending abili..
The effect of global competition on the decisions made by management with regards to change in labor demand, supply, relations with unions, and rules and regulations in your chosen industry. The chosen industry is General Motors. Please provide sourc..
Illustrate what ranges of the money growth rate (assuming positive values) would allow the Bank of Korea to achieve this objective.
Derive the Iso-quant curve for this firm. Derive the Expansion path for the firm if w=1 and r=3. Derive the long run cost function if w=1 and r=3. What is the optimal capital and labor if you want to produce 500 units of output?
Walter builds birdhouses. He spends $5 on the materials for each birdhouse. He can build one in 30 minutes. He is semi-retired but earns $8 per hour at the local hardware store. He can sell a birdhouse for $20 each. An Accountant would calculate the ..
An industry which generates detrimental externalities will have a marginal social cost higher than the marginal private cost to the industry.
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