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Bridget has a limited income and consumers 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?
MMM expects to generate $60,000 in earnings that will be retained for reinvestment in the firm this year.
Illustrate what means do they use to hedge against exchange rate risk. Using this information.
Illustrate what is the minimum price necessary for the company to supply one thousand cups.
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Illustrate what is the market elasticity of demand. What is your elasticity of demand in this Cournot oligopoly.
The price elasticity of demand for Royal Crown Cola is equal to the price elasticity of demand for soft drinks in general It is invalid to make inter product elasticity comparison
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Assume you want to test the null hypothesis that the mean value of the bill in the box is 9 against the alternative that it is less than 9.
Assuming no other changes, if balances in money market deposit accounts increase by $50 billion and small-denominated time deposits decrease by $50 billion.
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Calculate the over all MC for the 1st 10 units of output also Specify where each successive unit will be produced.
As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant, illustrate what two policies could you use to reduce the total amount of emissions.
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