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Question: Suppose that Omar's marginal utility for cups of coffee is content at 1.5 Utils per cup no matter how many cups he drinks. On the other hand his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second 8 for the third and so on. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.
Why is perfect competition usually a preferable market structure compared to monopoly? Discuss the conditions under which a monopoly would be the preferable market structure for productive efficiency.
An article in Business Week warned of the dangers of deflation as the collapse of numerous Asian economies was creating worries that Asia might try to “ export its way out of trouble”.
What levels of G and T are needed to both move to full employment at Yf and balance the budget? Now assume economy is operating at full employment and that the budget is balanced. Suppose that the government imposes an income tax with a marginal t..
can country A change the outcome of the game by burning the bridge they are crossing to invade and committing its troops to fight? expand the game tree to show this option for county A and find the new Nash equilibrium. Explain
ethanol is a motor fuel manufactured from corn, barley, or wheat, and it can be used to power the engines of many autos and trucks. suppose that the government decided to probide a large per-unit subsidy to ethanol producers.
Complete a SWOT analysis for the selected industry. The SWOT analysis allows a business to understand how a competitor is positioned in the environment by assessing its strengths.
It is shown that the population of New York City, NY is much greater than that of Irvington, NJ. Employment opportunities, malls, social activities and tourist sites in New York City are therefore more than that in Irvington. If attractiveness for Ne..
Ashenfelter proposed a method to estimate the causal effect of education on income based on the Vietnam draft lottery. The table below shows the average education and annual salary of two groups of men: those born on September 7, 1950, and those born..
Developed a model of a market utilizing supply and demand. What are the dominant variables or parameters? What is surplus and what is shortage? DEMONSTRATE
Suppose that at the bundle (X1*,X2*) the consumer is maximizing his utility subject to his budget constraint and the price ratio exceeds the absolute value of his marginal rate of substitution. Use a graph to illustrate this consumer's optimal choice..
You inherit $10K when you are 20. What is this worth when you are ready to retire at 65? Assume that the money can be invested at 7%.
Consumption equals $32,000 when disposable income equals $40,000. Consumption increases to $38,000 when disposable income increases to $50,000. What is the marginal propensity to consume? The marginal propensity to save?
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