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Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound. The last bottle of wine added 50 units to Bridget's utility, while the last pound of cheese added 40 units.
a) Is Bridget making the utility-maximizing choice? Why or why not?
b) If not, what should she do instead? Why?
q.an investor puts 15000 into each of four stocks labeled a b c and d. the table shown below contains the means and
For what rate of inflation, both the options are equally attractive ? Describe two different methods of "Depreciation" an equipment / plant may undergo (with numerical example)
Which of the variables above is NOT statistically significant at the 0.05 level.
Elucidate why would new textbook sales fall in the yrs subsequent the release of the latest edition.
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semi-annual interest payment. The bond rate is 6.6% per year payable semi-annually. You plan to hold the bo..
What will be the government deficit. If the government finances the deficit by issuing bonds, what amout of bonds will it issue?
If I produce 20,001 copies my total cost will rise to $750.02, therefore my marginal cost of producing copies must be increasing.” Draw a graph to illustrate your answer.
Illustrate what would happen to the profit maximizing level of output if the market price suddenly rose to $54 per case. Explain why the output level changes.
Why is aggregate demand curve downward sloping? (Interest-rate effect, foreign purchases effect and real-balances effect be able to explain logic behind each of these) What are the determinants (shifters) of AD curve. Be able to determine the equilib..
Projects A requires an initial outlay of $1000 and yields $41200 in 4 year's time. Project B requires an outlay of $30 000 and yields $35 000, after 4 years. Which of these projects would you choose to invest in when market rate is 3 percent."
Elucidate under a fixed exchange rate system expansionary monetary policy depletes foreign reserves at the federal reserve.
Stan Money maker needs 16 gallons of gas to top off his tank. I he drives an extra 8 mile round trip Stan can save an extra $0.05 a gallon. Suppose gas costs $3.10 per gallon and Stan gets 24mpg. Each mile driven gives off CO2 that has an environment..
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