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You are reviewing your monthly budget and determine you have $60.00 to spend on either books or movies each month. (Remember you must have whole numbers, not fractions) The books cost $8.00 and the movies cost $20.00. Put this into equation form.
Complete the following Total Utilities table.
Books
Total Utility
Quantity
Marginal Utility
Marginal Utility Per $
50
1
80
2
100
3
110
4
Movies
22
42
52
57
Using the equation created above, solve to locate four points and plot them on a budget constraint line. Create the graph in Excel and paste onto your Word document answering the questions below. Review the tutorial on creating graphs in Week 01 if you run into any problems.
Write a one page response answering the following questions about your graph and tables:
Explain the difference between the demand curve facing the monopoly firm and demand curve facing the perfectly competitive firm.
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One of the major problems facing Cisco Systems and other direct sellers is
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The price elasticity of demand for imported whiskey is estimated to be -0.20 over a wide interval of prices. The federal goverment decides to raise the import tariff on foreing whiskey, causing its price to raise by 20%. Will sales of whiskey rise or..
Find the project's expected cash flows and NPV. Now suppose the BSI can abandon the project at the end of the first year by selling it for $6 million. Assume the salvage value is risky and should be discounted at the WACC.
Alfred chan decided to buy an old duplex as an investment. After looking for several months, he found a desirable duplex that could be bought for $300,000 cash. He decided that he would rent bought sides of the duplex, and determined that the tota..
Why will a monopolist"s output increase if the government forces it to lower its price? If the government wants to set a price ceiling that maximizes the monopolist"s output, what price should it set?
Assuming that banks used all their excess reserves to support an increase in the volume of bank lending, by how much would bank lending expand if the Fed undertook the policy action that was your answer to the question above.
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