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a. What does it mean by Indifference Curve (IC)?
b. Why IC's are not allowed to cross each other? Explain!
c. If Anita has a budget for recreation an amount of Rp 1.000.000 this semester. She has alternatives to watch movie or concert. Movie ticket costs Rp 50.000 and concert ticket price Rp 200.000. How Anita's budget constraint?
d. What will happen if concert ticket increases to Rp 250.000? How are the effects on Anita'srecreation choice?
e. If it is assumed that the two alternatives are normal goods, draw graphs for the case of (c) and (d) by using the corresponding curves.
Are there any upsides that a business may enjoy by deciding to use the narrow span control approach instead of using other approaches?
Last year Mason Inc. had a total assets turnover of 1.5 and an equity multiplier of 1.75. Its sales were $195,000 and its net income was $10,000. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased..
Chipotle wants to run an experiment to estimate the demand elasticity for its customers who consume pork burritos. Chipotle raises the price of pork burritos 5% in half of its restaurants, but keeps the price of pork burritos unchanged in the other h..
Colgate ( the tootpaste company) should spend more on advertising than Coca-Cola, if we consider the advertising expenditures as a percentage of sales. Why, or why not? Provide one argument pro and one against advertisng. Illustrate with at least one..
What are the major areas of concern in the Study of Microeconomics?
A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $800,000 per month. For this situation, determine the optimal monthly sales volume for this product..
What are the economic tradeoffs between low- income and high-income countries in international conferences on global environmental damage? What arguments do low-income countries make in international discussions of global environmental clean- up?
Explain Consumer price index (CPI) measurement problems and disadvantages?
If government follows an expansionary fiscal policy and G changes by 60, calculate the change in Y for both the closed economy (?Yclosed) the open economy (?Yopen). Assume no change in the foreign output (Y*), Calculate the new trade balance.
Listed in descending order of numerical importance, the business population is comprised of: a) sole proprietorships, corporations, and partnerships b) sole proprietorships, partnerships and corporations c) partnerships, corporations, and sole propri..
Provide At least two products for each country that have provided China, the US and Germany an absolute advantage in trade.
Use the principle of supply and demand to address a predetermined goal (set by the student). Be clear on what the current market indicates.
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