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Latanya likes to talk on the telephone. We can represent her preferences with the utility function U(B, J) = 18B + 20J, where B and J are minutes of conversation per month with Bill and Jackie, respectively. If Latanya plans to use the phone for one hour to talk with only one person, with whom would she rather speak? Why? Draw the indifference curves showing Latanya’s preferences at utility levels 180, 360, and 540.[PUT “B”on Y-axis]
The US government could not pass its annual budget. As a result, the US government has partially shut-down: roughly about 800000 federal employees of non-essential services are out of work
Suppose there are n identical firms in a market. Each firm’s cost function is given by C = 25 + q2, where q is the amount that an individual firm produces. How much output will each of them produce? What will be the market price? How many firms will ..
Why is the cost of health care so high in the U.S. and the U.S. does not have the best system. If a person has co-pay health insurance what does he/she base his/her purchase decision on, the real price or what actually comes from his/her pocket? Does..
Whenever the economy goes into recession (as occurred most recently in 2008), consumption in the United States decreases. If the economy went into a recession, but you were not directly affected, do you think you might change your consumption pattern..
What are the potential consequences of a country having a large overall debt? If you were in the position to implement a solution for the country's long-term debt, what would it be and why?
For the closed-economy, one-period model, suppose that U (C, l) = ln (C) + β × l, and F (K, N) = zKαN 1−α , where β > 0, and 0
Discuss. “The internationalization of banking has weakened national safeguards against banking collapse, but at the same time it has made the need for effective safeguards more urgent.”
Many argue that breaking up a monopoly is a Pareto-efficient change. This interpretation cannot be so because breaking up a monopoly makes its owners (or share holders) worse off. Do you agree or disagree. Explain your answer.
Explain how you think these trends have affected our overall economic well-being (think unemployment, wage rates, etc.) in recent years.
Assume for this CheckPoint that purchasing a new home is a major decision requiring a substantial financial outlay where the wrong decision has long-term financial consequences.
The difference between a monopsonist and a monopolist is that. In a perfectly competitive output market, the value of the marginal product of a resource is
Your company has just signed a three- year non renewable contract with the city of New Orleans for earthmoving work. You are investigating the purchase of heavy construction equipment for this job. The equipment cost $200,000 and qualifies for 5 year..
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