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Ken has a utility function for tennis rackets (X) and tennis balls (Y) of the form U(X,Y)=min(4X,2Y). His Hicksian demand for X is given by:
Describe free trade and its impact on the global economy. Describe demographic factors and how they affect the economy.
A firm is making a long-run planning decision. It wants to decide on the optimal size of plant and labor force. It is considering building a medium-sized plant and hiring 100 workers.
A colleague tells you that he can get a business loan from the bank, but the rates seem very high for what your colleague considers a low risk loan. a. Give an adverse selection explanation for this, and offer advice to your friend on how to solve ..
Thirty years ago, the market for chicken was perfectly competitive. Then, Frank Perdue started marketing chicken under his own name.
why are banks able to maintain reserves that are only a fraction of the demand and savings deposits of their customers?
If the elasticity of crime with respect to the number of police is estimated to be -0.5 and the number of police fell by 5% and annual expenditures on police are equal to $60 billion and the cost of crime to victims is estimated to $400 billion then ..
Suppose you suddenly realize that your demand estimates might have some uncertainty in them. How might you change value of surplus you give to the customers because of this?
Using the intermediate macroeconomic
Two variable inputs, labor (L) and materials (M), are used to produce output. Company's current level of output: CL = $10 / unit, MPL = 25 CM = $2 / unit, MPM = 4 (!) Decide whether the firm is operating efficiently, given that its objective is to mi..
The inverse market demand curve for paper is given by P=400-2Q. There are two firms who produce fax paper. Each firm has unit cost of production equal to c=40, and they compete in the market quan-tities. That is, they can choose any quantity t..
question 1. on august 14 1947 the indian subcontinent which was under british rule for nearly two centuries was granted
You are a factory owner who has just purchased a new machine for $5,000. Over the next year, it would have cost you $1,000 to rent this same machine. If the machine sells for $5,000 one year from now, what is the rate of return on this asset?
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