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Suppose there are two types of shirts available to Carl: red shirts and black shirts Carl is always willing to exchange three black shirts for one red shirt.
a. What type of preferences is mike exhibiting?
b. Draw several indifference curves to illustrate Carl's preferences.
c. What is Carl's MRS?
d. Are Carl's preferences monotonic? How do you know?
e. Are Carl's preferences convex, strictly convex, or not convex? Explain/show how you know.
In the absence of regulation, firm 1 would emit 15 and firm 2 would emit 20. The firms have the following marginal control costs where q1 and q2 are the amount of emissions reduced by each firm. If instead an emission permit system was established, h..
Illustrate what will be the cumulative effects including the multiplier for each of the above three policy choices.
Explain with the concept of optimization and a graph, the circumstances under which a waste site could be made "too clean".
q1. assume you were appoint as an adviser to a developing country and you were versed in the theory of production the
What probability of discovery would make the driller indifferent between drilling and not drilling and what is the expected value of perfect information on reserves?
In December 1994 a man in Ohio decided to deposit all of the 8 million pennies he’d been saving for nearly 65 years. (His deposit weighed over 48,000 pounds!) With a reserve requirement of 12.5 percent, what will be the cumulative change for the bank..
Assume that you have been appointed as the Speaker of the House. You must deliver a speech about the current state of the U.S. macroeconomy to a number of amateur reporters who are unfamiliar with economics.
According to crowding out hypothesis, an increase in ---- will lead to increase---- and later on a crowding out of (a decrease in)------
How much is this account worth after 28 years? Submit your answer to the nearest dollar. What is the effective interest rate of an investment if the nominal annual interest rate is 7.77%.
The Marginal Product of Labor and the Marginal Product of Capital are given.
Explain why monopolistically competitive firms frequently prefer nonprice competition to price competition.
It is priced at only $400. Suppose your opportunity cost of funds is 5 percent , which refrigerator should you purchase.
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