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Freshman Jim Student only consumes two goods: paper (P) and cups of coffee (C). Suppose that currently Jim has $300 of spending money for the semester. The price of coffee is $3.00 per cup and the price of paper is $5 per 100 sheets. Jim's preferences are very nicely behaved (indifference curves that are bowed-in towards the origin). Assume that both coffee and paper are normal goods for Jim and that both coffee and paper can be purchased and consumed in fractional units.
Question: On your budget line graph, properly illustrate Jim's optimal bundle on his utility maximizing indifference curve.
Describe a decision-making scenario using your business experience, personal decision making or cited journal article; include an example of the decision-making process, describe the risk, and whether persuasion was used.
Determine the rate of return of on investment in this machine. Express the answer as an integer. For example, enter 10 for 10%. (Hint, this problem can be solved from the Compound Interest Factors tables)
assume the tax multiplier is estimated to be 1.5 and the aggregate supply curve has its usual upward scale. suppose the government lowers taxes by 150 million. aggregate demand will increase or decrease and by how much?
Suppose China wishes to peg the Chinese Yuan to the US dollar at $0.20/Yuan. But, because of foreign funds flowing into China, the Yuan appreciates. How can the People’s Bank of China (China’s central bank) maintain the pegged exchange rate? Is the B..
Morgan Bank starts with $ 200 in bank capital. It then takes in $ 800 in deposits. It keeps 12.5 percent (1/ 8th) of deposits in reserve. It uses the rest of its assets to make bank loans. Show the balance sheet of Morgan Bank.
Suppose the restaurant’s cost function for shrimp balls is C(Q) = 2500 + Q + Q2, and the marginal cost curve is therefore MC(Q) = 1 + 2Q. What is the variable cost function? What is the average variable cost function? What is the average cost functio..
q1. if capital is measured on the vertical axis and labor is measured on the horizontal axis the slope of an isoquant
Determine the profit of the Restaurant. If the company were to produce as a perfectly competitive firm, how much would it produce? What price should it charge as a competitive firm?
Analyze the economics of New Orleans in light of the above parameters and develop your own Cost-Benefit Analysis (CBA) for rebuilding
Discuss the four Cs that are determinants of high performing teams, and explain how they contribute to superior performance of teams - Explain, in detail, how culture, structure, and systems can support or discourage teamwork.
The version of Okun’s law assumes that with no change in unemployment, real GDP (RGDP) normally grows by 3 percent over a year. If RGDP last year was $12,375 and the unemployment rate fell by 1 percentage point from last year to this year, what would..
Compare and contrast direct finance and indirect finance which is more likely to have a larger share of the total financial market in a mature economy and the young economy why.
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