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Julie has preferences for food, f, and clothing, c, described by a Cobb-Douglas utility function u(f,c) = f ·c. Her marginal utilities are MUf = c and MUc = f. Suppose that food costs $1 a unit and that clothing costs $2 a unit. Julie has $12 to spend on food and clothing.
What is the mathematical expression for sJulie's MRS in terms of f and c?
What exactly is computational economics? For example, does certain software for calculating/predicting/visualizing cost of manufacture falls under computational economics?
Show how the equation in uncovered interest parity is derived. Explain. Assume the expected $/Yen exchange rate is 0.01 dollars per yen. Further assume that the US interest rate is 8% and the Japanese interest rate is 3%. According to uncovered inter..
Describe whether Indian Consumer goods industry is growing at the cost of future profitability.
The world becomes a single market, some new approach must be developed to control the reach of the corporate oligopolies.
How have people reacted to poverty? How has the American government reacted to poverty? Has anything been effective in addressing poverty in America?
q1. consider a firm as we did in the notes that maximizes it profits by selecting how many workers and how much capital
If the price elasticity of demand is -0.6 and the income elasticity is +0.25, then what is the effect of a simultaneous 10% increase in price and a 20% increase in income on total health expenditures (again just the direction, do not need to calculat..
You are told by the analyst that Apex Trading Co stock performance is unrelated to the performance of the market. The value of Apex’s beta and its standard error are calculated to be 0.314 and 0.256 respectively. The model is estimated using 50 quart..
Is the American Dream like the mythical Phoenix rising from the ashes? What are your thoughts?
Assume that an economy is in the long-run equilibrium with the GDP deflator of 150 and potential output of $40 billion. The economy is experiencing a shock – a sharp drop of stock prices. What problem is the economy facing? The government decides to ..
From the following equations for the supply and demand curve. Demand Qd= -1/2P+14
How does quantitative easing relate to functions of the federal reserve? What is its purpose in adding more liquidy to the banking industry? Is the federal reserve still using quanititative wasing as of 2016.
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