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Jane has a $15 gift certificate that is only redeemable for peanuts. The bags of peanuts come in two sizes, regular and large. A regular bag has 30 peanuts and a large bag has 50. If a regular bag costs 50 cents and a large bag costs 75 cents how many of each will Jane purchase? What if the large bag costs $1? In each case, draw a budget line that shows her available choices, and indicate her best choice by adding indifference curves. Assume that Jane only cares about the number of peanuts, and not about the size of the bag.
In order to have money available for replacing their family vehicle, a couple planned to have $220,000 available in 10 years by investing. If they plan to increase their savings by 10% each year, how much must they invest in year 1 if they expect ..
Assume that a national restaurant firm called BBQ builds 20 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $300,000 of equipment and furnishings
A plan to build a new tower would involve a building tax that would collect $6,745 each year for all people in a certain city. If the cash flow begins 2 years from now, what is the present worth of the building plan over a 10 year planning period ..
Explain difference between profit maximization and shareholder wealth maximization and determine which of these is a more comprehensive statement of a firm's economic objectives?
What is the own price elasticity of demand when Px = $154? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price below $154.What is the cross-price elasticity of demand between good X ..
Moving along the demand curve, quantity demanded decreases 8 percent when price increases 10 percent .a. The price elasticity of demand is calculated to be. b. Given the price elasticity calculated in part a, demand is (elastic, inelastic, unitary e..
An individual has to choose between investment A and investment B. The individual estimates that the income an dprobability of the income from each investment are as given in the following table. Using Excel statistical tools, calculate the standar..
Explain what happens to the coefficient on coll in terms of its magnitude and its statistical significance when points , rebounds , and assists are added to the regression. Why do you think this happened?
A national park in California contains the tallest known redwood tree, as well as remnants of the coastal redwood ecotype that once dominated coastal California. The park does not receive many visitors; it has been estimated that no more than 5,00..
Mr. Jones has deposited his life savings of $70,000 in a retirement income plan with a local bank. The bank pays a. 10%, b. 11.25%, per year, compounded annually, on such deposits.
What is the profit maximizing (loss minimizing) level of output for Chan in the SR? ii) Calculate the total economic profit (or loss) that Chan. would receive at this particular level of output. You must show all of your work to r..
Fit a multiple regression model of y on x1 and x2. Fit two simple linear regressions: (I) y on x1; (II) y on x2. Compare the results of multiple regression analysis with each of simple linear regressions.
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