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Maria lives 2 periods. In period 1, she is a student in Philosophy. Her income is 0 and she does not pay taxes. In period 2, she will have a BA in Philosophy. Her income after tax will be $55,000. The interest rate is 10% (0.10). Her utility is given by
It can be shown that the optimal consumption allocation is:
a. Determine Maria's lifetime wealth.
b. Determine consumption and savings of Maria in period 1 and in period 2.
c. Maria decides to switch a major and is now a student in Business. In period 2, she will have a BA in Business and her income will be $88,000. Determine Maria's life time wealth. Determine consumption and savings of Maria in period 1 and in period 2.
after you complete your mba you decide to open a business named directdelivery. directdelivery is a courier service in
Suppose the government imposes a tax of $1 per unit to reduce widget consumption and raise government revenues. What will the new equilibrium quantity be? What price will the buyer pay? What amount per unit will the seller receive?
The industrialization period of the late 1800's saw several new forms of energy developed, including 1. more effective use of humans and animals to power machinery using treadmills.
An improvement in soft drink bottling technology and an increase in the prices of sugar and high- fructose corn syrup.
Suppose that Total Revenue = 100Q and Total Cost = 30 + 50Q where Q, the quantity sold, is a random variable with expected value 20 and variance 4.
suppose the demand for a product is given by p 40 4q. also the supply is given by p 10 q.what is the price
1. cinema theater has estimated the following demand functions for its moviesdaytime demand qd 400 - 50 pdnbsp
Distinguish between collusive and non-collusive oligopoly. Explain the following features of oligopoly.
1. two individuals fred and helen in an economy with no production each have the utility function u 10xy. prices of
Why did president Obama want to repeal the Bush era tax cuts on upper income tax payers How would the repeal of these tax cuts impact aggregate demand and to what degree How did the economic conditions in 2010 make such a repeal less likely to tak..
Suppose there are two technologies for producing steel. Under technology A, a firm's short-run total cost function is STCa(q)=1/2q^2+100q+10 with SMCa(q)=q+100, and using technology B it is STCb(q)=2q^2+6 with SMCb(q)= 4..
analyze and outline the three most likely reasons for growing food insecurity in the united states. do you think food
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