Calculate the marginal utility of X (remember, this is the change in utility resulting from a slight increase in consumption of X). [ad_1] Price of good X is $1.50 and the price of good Y is $3. You have $45 to spend and your preferences over X and Y are defined as: U(x,y) = x2/3y1/3 […]
Determine its optimal price and resulting profit margin. [ad_1] Brown City Pet Food Co. produces a complete line of dry pet foods. During the past year they have been test marketing a meat-based dog food. The firm’s plant is located in an industrial park adjacent to the Brown River. The city’s water system as well as
Determine its optimal price and resulting profit margin. Read More »
An industry is characterized as having many firms, a differentiated product, no barriers to entry and elastic demand. What is it’s market structure? [ad_1] 6.Pure monopolists may obtain economic profit in the long-run because: a) Of advertising b) Marginal revenue is constant as sales increase c) Of barriers to entry d) Of rising average fixed costs 7.An industry is
The money supply M is 3,000, and the price level P is 3. Graph the LM curve for [ad_1] Consider the economy of Hicksonia. a. The consumption function is given by C=300+0.6(Y−T). The investment function is I=700−80r. Government purchases and taxes are both 500. For this economy, graph the IS curve for r ranging from
The money supply M is 3,000, and the price level P is 3. Graph the LM curve for Read More »