Sobel consumes positive quantities of both jam and juice. The price of jam is 5 cents per unit and the price of juice is 10 cents per unit. Her marginal utility of jam is 10 and her marginal utility of juice is 5. a. Wit ...
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Consider a low wage market. Assume that the market demand curve is P = 20 - Q/500, and the market supply curve is P = 2 + Q/1,000. Workers in this market are not presently covered by the minimum wage, but the government ...
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What are the implications of the shift from medical care to the focus on overall health conditions?
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Assume 20% of customers who enter a clothing store make a purchase and customers behave independently of one another. Ten customers enter the store in the next hour. The salesman on duty makes $20 per hour plus a $10 com ...
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You are a division manager at BMW. You estimate the semiannual demand for model X3 is: Q=150,000-1.5P What price should you charge in order to maximize the revenues from sales of model X3? Explain.
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Suppose the cross-price elasticity of demand between goods X and Y is -4. How much would the price of good Y have to change in order to change the consumption of good X by 10 percent?
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Briefly explain the meaning of the t-test for regression analysis. How can the "rule of two" be used to evaluate t-ratios?
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A bar wants to move into a new area. They want to find out the average income of people in the area to set a price point. To estimate the income of the locals with an error of at most $5,000 at a 80% confidence level, wh ...
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Suppose the production function for a firm is given by: q=4L 0.75 K 0.25 . If the firm currently has 10 units of capital (K) and 10 units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRT ...
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Players of a lottery pay $1 for a ticket that lets them select 6 non-repeating numbers from 1 to 49. What is the probability of correctly guessing all 6 values with just one ticket?
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