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Suppose that Gina's marginal utility from drinking milk is 5 utils per litre and her marginal utility from drinking coffee is 10 utils per litre. If the price of milk is 50 cents per litre and the price of coffee is 80 cents per litre, is Gina maximising her utility? If so, explain why. If not, explain how she should change her spending to increase her utility.
Illustrate what were Enron's problems from an organizational architecture point of view.
In the Solow model with technological progress, consider an economy that begins in steady state with a rate of technological progress, g, of 2%. Suppose that g rises permanently to 3%. Assume α = 1/3. What is the growth rate of output per worker befo..
Bob borrows $52000 from a local bank at an APR of 7.2% compounded monthly. His monthly patents are $52000(A/P, 0.6%, 54) = $1128 for a 54 month loan. If Jim makes an extra payment on the first month of each year, his repayment duration for the loan w..
Few years back, HP launched four new computer models aimed at the Chinese and Indian consumer markets to create loyal customers as these markets emerged. Using penetrating pricing strategy, HP priced the new computers under $400, significantly less t..
An important distinction in health insurance is between the list price (PL) and out-of-pocket price (PP) of a medical good or service. The list price is the official price that the provider charges the insurance company, while the out-of-pocket price..
The installed cost of a conventional electric hot water heater is $200. A family of four uses an average of 300 liters of hot water a day, which will require $350 worth of electricity each year.
What are lags in monetary policy? What causes inside and outside lags in monetary policy?
You would like to sell 500 shares of Pfizer, Inc.(PFE). The current bid and ask quotes are $27.36 and $27.39, respectively. You place a limit sell-order at $27.
After watching the Freakonomics video clip on the incentives that sumo wrestlers face
The strategy of tit-for-tat is
Pumpkin growing is a perfectly competitive industry. - What happens as time passes?- What is the long-run equilibrium outcome?
Explain how a union might cause an increase in employment in the unionized occupation. Also, explain how this might, in this case, affect wages in related non-unionized occupations.
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