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Suppose Mary enjoys Pepsi and Coke according to the function U(P,C) = 4C + 5P. What does her utility function say about her MRS of Coke for Pepsi? What do her indifference curves look like? What type of goods are Pepsi and Coke for Mary? If Pepsi and Coke each cost $1 and Mary has $20 to spend on these products, how many units of each product should she buy in order to maximize her utility? Show this utility maximiz- ing combination combination of Pepsi and Coke on the graph. how would her consumption and utility maximizing bundle of Coke and Pepsi change if the price of Coke decreases to 50 cents.
Describe how Kristallnacht represented a logical extension of the anti Jewish, prejudicial thinking that was incorporated into the Nuremberg Laws. Holocaust
Suppose a war breaks out in the Middle East, which raised the price of gasoline in the United States. How would this impact the supply and demand for gasoline in the Unites States? Please illustrate using a graph and explain in words.
Some estimates for the cement industry suggest the following relationship between capacity and average cost: Capacity (thousands of tons: 250 500 750 1000 1,250 1,500 1,750 2,000 Average Cost: 28.78 25.73 23.63 21.63 21.00 20.75 20.95 21.50. Assume t..
How will each affect equilibrium price and equilibrium quantity in a competitive market? Will price and quantity rise, fall, or be unchanged? Based on the magnitudes of the shifts, will the answers be indeterminate? Demand decreases and supply is con..
Select one of the following entities; Google, Yahoo, DropBox or Amazon. Briefly, describe the entity's underlying business model. Construct a valuation model to determine the entity's intrinsic value.
A man pays $160 a year for a life insurance policy with a coverage of $145,000 payable to his survivor upon his death. The probability that he will live through the year is 0.9992. Supply the probability table for this problem. (In this case the outc..
Write down the formula that is used to calculate the yield to maturity for a five year, 8 percent coupon bond with a $1,000 face value that currently sells for $900. You do NOT have to find the actual value of the yield to maturity for this coupon bo..
When you travel to South America, you encounter countries that have a vast amount of natural resources, and very large labor forces. However, despite an abundance of these resources, you also see a lot of poverty.
Suppose a firm in a competitive market reduces its output by 20%, as a result the price of its output is likely to? Suppose a firm in a competitive market produces and sells 150 units of output and earns $1800 in total revenue from the sales, if the ..
Managers of some small businesses save costs by eliminating most of the land line telephones and require that employee use their personal cell phones to make most business calls. What do you see as the advantages and disadvantages of this approach to..
Although inflation has been steady at a 2.5% average rate, economists now see trouble on the horizon due to the increases in crude oil prices over the next eight years. The leading economists in the oil industry expect oil prices to inflate; at first..
Many countries have value-added taxes that are paid by producers but are intended to fall on consumers. (They're basically just an indirect way of imposing sales taxes.)
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