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Q1. You have $2000 to spend on entertainment this year. The price of a day trip (T) is $40 and the price of pizza and a movie (M) is $ 20. Suppose that your utility function is T1/3 and M2/3. (a) What combination of T and M will you choose? (b) Suppose that the price of day trip rises to $80. How will this change your decision making?
Q2. Consider the following regression model:1/yi = b1+b2(1/xi)+ui(a) Is this a linear regression model?(b) How would you estimate this model?(c) What will be the behaviour of Y as X tends to infinity(d) Give an example where such a model will be appropriate
Illustrate what do you think would occur when there is little or no competition is a marketplace
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The company has determined that it would earn zero economic profits if price were equal to average total cost, and in this case it could sell 20,000 copies. In the short run, what is the profit-maximizing price of e-books relating to do-it-yourself..
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Relatively more inelastic than those of firms which only make house windows. Which product is to be the most price elastic between housing or automobiles?
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They ask you what directive they should give to the open market desk. you tell them , being as specific as possibel, using the money multiplier. they ask you for two other ways they could have achieved the same end. You tell them.
Describe how the Production Possibilities Curve (PPC) changes for a nation facing increasing opportunity costs for producing food and video games given the following events
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