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1. How do we ca L lculate the MRP? Why is that what we pay them?
2. Why is VMP < MRP for a price searcher? (I expect more than the one sentence in the book. A mathematical example might help.)
Consider a pure exchange economy with two individuals (call A and B) and two goods (called X and Y ). Individual A has 120 units of good Y but no good X, and A's utility function is given by UA(xA, yA) = ln(xA)+ln(yA). Find the Walrasian equilibrium ..
Explain what Bounded Rationality is. Then discuss how this concept can affect the decision situation in SLP 1 - Also discuss how this concept can affect the data analysis in Case 1.
Suppose, the current year is the base year for the price index calculation and the Nominal interest rate is 6.59% and the Expected inflation rate is 4.61%:
An organization wants to estimate the mean debt of this year's college graduates. It is known that the population standard deviation of the debts of this year
In addition to solving the problem correctly, you need to include a brief explanation of how to solve problems of the general type given here. How much total spending is engendered by an infusion of $800 million into a closed economy with a marginal ..
Part 1: Use the copy tool to draw a curve showing the marginal social benefit (MSB) from the use of mosquito nets.
The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats, the price is $1 million and 240 luxury boats a week were bought. Now luxury boats are taxed at 20%. What is the price that ..
If income rises from 1000 to 1800 and consumption rises from 1100 to 1700 the marginal propensity to save.
If each nation grew at a constant rate over these years, in which year did the U.S. overtake the U.K. in terms of average income.
Suppose that the output of a certain country is given by:Q = 20x^3/5 y^2/5 billion dollars if x billion are spent on on labor and y billion dollars are spent on capital, Find the output of the country if it spends $32 billion on labor and $243 billio..
Suppose you have 5 stocks. In the past week they have changed in the following way: +5,1,+2,3,2. For each of the value functions from the previous problem, determine what the optimal way to bracket stocks into a portfolio to maximize the value.
When inflation occurs some economic agents gain and some lose. Who would gain and lose if deflation occurs? Why? What will happen to interest rates and investment according to Keynesian and Classical/ Monetarist theories? Is inflation still a possibl..
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