A household of a wife and husband get utility from hours spent watching HBO (Z). To produce one unit of hours spent on watching HBO, this household need to subscribe to HBO that cost X, and spent time watching show together (t,, tw). The home production function is Z = X · t„th. Moreover, the utility function is linear (i.e. U(Z) =Z)). Assume that each member of the household either spent time watching HBO or out working in the labor market and get wage (wh, ww). If you were a household planner, how do you think they should decide the optimal allocation of working hours? In a simple case, lets assume T = 1, and there is no out-out-labor market income (ie. V = 0).
Q: "Fed Chair Jerome Powell said he supports a traditional quarter-point increase in the Federal Reserv...
A: A lender charges a borrower an interest rate that is a percentage of the principal (the amount borro...
Q: The Finger Lakes region in New York State produces wine. The climate favors white wines, but reds ha...
A: Total cost is the sum of fixed and variable costs.
Q: what should or should not be done to prevent school bullying?
A:
Q: Suppose a straight-line downward-sloping demand curve shifts rightward. Is the price elasticity of d...
A: Answer: Price elasticity of demand is the measure of the responsiveness of quantity demanded to chan...
Q: . The traditional economic (the Neoclassical view) approach to behavior suggests that: A. employees...
A: Neoclassical economic theory proposes a set of axioms that lead to choices that are unaffected by so...
Q: What is the main purpose of AMLC (Anti-Money Laundering Council? * a. Monitor all transactions of ba...
A: Money laundering refers to the situation when a firm, bank or any other institution make an exchange...
Q: Suppose that as the price of Y falls from $3.00 to $2.80, the quantity of Y demanded increases from ...
A: Price elasticity of demand is a measurement of the change in the consumption of a product in relatio...
Q: d) It is impossible for an Engel curve to be positively sloped for a certain region of income and ne...
A: d) An Engel curve is a graph representation that depicts the association between a good's demand and...
Q: 12 A researcher reports survey results by stating that the margin of error for the 95% middle interv...
A: The margin of error E for 95% middle interval =44.75 Population variance =18750 We have to find samp...
Q: What happens when supply is more elastic than demand; and vice versa?
A: The measure which depicts the percentage change in quantity being demanded with respect to the perce...
Q: TRUE OR FALSE Perpetuity is derived from the fact that the number of compounding periods approache...
A: A perpetuity is an unending succession of equal-value monthly payments. As a result, the owner of a ...
Q: Question 7 If a seller's marginal cost is MC-15+4Q, calculate the seller's total cost (TCC) of suppl...
A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process. Mar...
Q: Poch placed Php2,500,000 in a time deposit that earns 0.75% per annum simple interest. The placement...
A: In this question we have to find out earning of yhe Banker's rule with the help of the above informa...
Q: There is an oil change firm in town called Oil Pro. The total cost function for Oil Pro is below. Wh...
A: When the firms breakeven they tend to earn Zero economic profit which implies total revenue is equal...
Q: choose a global event from the past 100 years such as pandemics, recessions and technological booms ...
A: our world economy is interrelated to each other country regarding trade as we call it international ...
Q: Exercise 3. 6olve the following perfect information game using backwards induc- tion. As a part of y...
A: Given information: There are two players in the game: Player 1 and Player 2 The payoffs at the end ...
Q: Which software should you purchase in order to save money in the long run, X or M? Not Satisfied $6,...
A: Given:- Two Softwares X and M with their values being $6000 and $12000. To determine:- which softwar...
Q: Suppose there is another consumer in the market for hamburgers, Mort. His demand schedule is given b...
A: Equilibrium occurs at the intersection of demand and supply curves, that is where quantity demanded ...
Q: A company's revenue is $1,600,000. Its explicit cost is $1,000,000 and its implicit cost is $700,000...
A: Implicit cost refers to the opportunity cost of the resources which is owned by the owner of the fir...
Q: Suppose that in a perfectly competitive market, the demand for Frisbees is given by Q=200-2P and the...
A: Equilibrium occurs at the intersection of demand and supply curves, where quantity demanded equals q...
Q: Describe why competitive market can be failed due to the presence of the public goods.
A: In a market, public good refers to the goods that are generally offered by the government as these g...
Q: Which of the following statements is true? O The Fed has chosen the interest rate as its target inst...
A: When Fed uses monetary policy target then both money supply and interest rate cannot be used togethe...
Q: You are the manager of a monopoly, and your analysts have estimated your demand and cost functions a...
A: A monopoly is a single firm selling unique good in the market and enjoys market power.
Q: Individuals will prefer to fully insure against a potential adverse event if A. individuals are ris...
A: In a market, people have individual differences and different behaviour to make an exchange based on...
Q: III 123 Verdana 12 A A- Aa BIU abe X, x2 Styles 3. Complete the following table: See module 3 notes,...
A: Fixed cost is the cost that remains same at all levels of output while variable cost is the cost tha...
Q: Show how consumption and savings evolve in an economy that starts with a level of capital well above...
A:
Q: Which of the following people would be unemployed (or belonging to any labor market group) according...
A: Government has tax revenue which are paid by people and through which they have to carry expenditure...
Q: Managerial economics cannot be used to show how the imposition of auto import quotas: a. raises auto...
A: 1. In the decision-making process, managerial economics employs a wide range of economic concepts, t...
Q: Choose the letter/s of the correct answer/s. How are you going to maximize a profit if the price is...
A: Profit is the excess of revenue(TR) over costs(TC).
Q: Thomas has the following utility function over milkshakes (m) and smoothies (S): U (m,s) =m+ 3s Toda...
A: Solution:-
Q: Elasticity of demand depends on a number of factors, including whether the product in question is a ...
A: Elasticity (ed) of demand is the ratio of %change in Qd(quantity demanded) and %change in P(price) o...
Q: TRUE OR FALSE The future worth of a perpetuity from one (1) to ? years is undefined because as ? ap...
A: The future worth of a perpetuity from one (1) to ? years is undefined because as ? approaches infini...
Q: 7. A common misconception is that trade takes place between two people because: A. they are willing...
A: The United States has the largest economy in the world, as well as the greatest exporter and importe...
Q: 2. Which of following statement is NOT correct about standard error? a. the square root of the estim...
A: a. The square root of the estimated variance of cofficient is called standard error. This statement ...
Q: Consider a multi-product monopolist that produces two goods q1 = Q1 (P1, P2) Bonus question and q2 =...
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts fo...
Q: The purchase of a new car requires P100,000 down payment and the balance to be paid at P300,000 afte...
A: The formula for the present worth is, PV=FV(1+i)n Here, PV is the present value FV is the future val...
Q: Which of the following statements is false? 9) a. A profit maximizing firm still sets output such ...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: Why does the growth rate of real GDP depend on the choice of the base year?
A: The base year serves as a comparison point for national account indicators. Indicators such as GDP, ...
Q: The utility funetion is u(s1, 12) = ef£2: > 0. The good 1 is a numeraire. Price of 2 is p. Income is...
A: a. Indifference curve for utility level u0 is given by, x1μx2=u0⇒x2=u0x1-μdx2dx1=-μu0x1-μ-1<0 sin...
Q: An industry consists of three firms with sales of $310,000, $725,000, and $405,000. a. Calculate the...
A: Total sales = 310000 + 725000 + 405000 = 1440000 1st firm market share = 310000 / 1440000 = 21.53 % ...
Q: Why do we say goods become more elastic over time? Question 9 options: people's incomes will in...
A: In a market, it can be seen that elasticity of demand differs in short-run and in long-run.
Q: Unexpected inflation can benefit some people/firms and harm others. This is an example of Multiple C...
A: Risk refers to an uncertainty about future payoff of an investment. There are chances that things ma...
Q: What is a Business? In your own words, explain what a business is?
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the exac...
Q: Explain Gerschenkron’s theory of backwardness in detail
A: A theory is a logical, abstract way of thinking about a phenomenon or its consequences. Observationa...
Q: The Finger Lakes region in New York State produces wine. The climate favors white wines, but reds ha...
A: In a market, when a firm or an individual make production of output to sell it in the market, they h...
Q: ppose that autonomous consumption is 50, government purchases are 125, planned investment spending i...
A: Aggregate expenditure is the sum of consumption, investment, government spending and net exports in ...
Q: 4. Demonstrate your understanding of the PPC. Use the table below to graph the PPC and make the nece...
A: Given A B C D E Ice cream 0 1 2 3 4 Chocolate 30 29 25 15 0
Q: 4. Assume that Canada and Kenya are trading partners. a. If the real interest rate in Canada decreas...
A: Answer(a) Financial account of Canada will be worsened or in deficits and the financial account of K...
Q: Japan Indonesia Capital 10 machines 30 machines Labor 20 workers 50 workers Suppose that Japan and I...
A: Ans a- The good which is relatively capital-intensive is a computer because for the production of la...
Q: HANDOUT 3 OPPORTUNITY COST: Examples A. Wanda paid $150 for a fully refundable plane ticket to San F...
A: Opportunity cost is defined as the forgone benefit that would have been possible from an option not ...
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
- Suppose Vivi’s utility function over tea and crumpets are given by U(T, C) = min(T, 3C). (a) Graphically derive Vivi’s demand for tea when her income is $60 and the price of crumpets is $2. Do this by showing her optimal consumption (exact numbers) at three different values for the price of tea. (b) What is the formula for Vivi’s demand function for crumpets when her income is $60, the price of crumpets is pC, and the price of tea is pT ? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Kate’s utility function includes coffee (c) and sugar (s). She only consumes coffee and sugar together, and she only consumes in the ratio of one unit (cup) of coffee with two units (spoons) of sugar. Her utility function is What is her marginal utility of sugar if she has 4 cups of coffee and 6 spoons of sugar? Remember that unit are infinitely divisible (you can have parts of units). (a) 0 (b) 1 (c) ½ (d) 2Let u(x) be a utility function that represents the preferences of a household. We say that the function v(x) is a monotonic transformation of u if f(·) is a strictly increasing function and v(x) = f(u(x)). (a) Show that if v(x) is a monotonic transformation of u, it represents the same preferences. (b) Can you explain why taking a monotonic transformation of a utility function does not change the marginal rate of substitution? (c) What kind of preferences are represented by a utility function of the form U(x1,x2) = ? What about the function U(x1,x2) = 13x1+13x2?
- Given U(c, t)=3c+4t expalin what the utility function says about the marginal rate of substitution.For each of the following utility functions get the marginal utility of consumption of each of the goods. 1/2 1/2 (a) u(a,b) = a b (b) u(x, y) = x³/4y1/4 (c) u(a, b) = n(a) + In(x) (d) u(x, y) = ln(x) + ln(y) (e) u(a, b) = 2xa +XbSam's extended family spends $3,200 per month on wine and beer. Their utility function is given by U = 200WB, where W represents the number of bottles of wine that they buy, and B represents the number of cases of beer that they buy. Wine costs $25 per bottle and beer costs $32 per case. Sam's family wants to maximize their utility. Calculate how many bottles of wine and how many cases of beer they should buy. Show your calculation(s).
- True/False Marginal utility is 0 for the Consumption of the very first unit.Ayana is pitching an idea for a startup company that makes and sells solar-powered phonechargers (C). Her market research has found that consumer demand for this product can beexpressed as a function of the price of the charger itself (PC), the price of phones (PF), andthe consmer’s income (I). Consumer demand can be described by the function C(PC, PF, I) =(i−10PC)/ (PF) Suppose her chargers come in all different capacities to meet any quantity demanded, so youdon’t need to worry about restricting C to whole numbers for this problem. (a) Does this product satisfy the law of demand?Explain.Ayana is pitching an idea for a startup company that makes and sells solar-powered phonechargers (C). Her market research has found that consumer demand for this product can beexpressed as a function of the price of the charger itself (PC), the price of phones (PF), andthe consmer’s income (I). Consumer demand can be described by the function C(PC, PF, I) =(i−10PC)/ (PF) Suppose her chargers come in all different capacities to meet any quantity demanded, so youdon’t need to worry about restricting C to whole numbers for this problem. (a) Does this product satisfy the law of demand?Explain. (b) Calculate consumers’ income elasticity as a function of the parameters. (c) Anaya is targeting a market whose income is expected to double over the next five years.Explain whether she should expect the demand for chargers to increase or decrease, andby how much, using the language of normal, inferior, luxury, and necessity goods. (d) Calculate the cross-price elasticity ofCwith respect toPF. (e)…
- Consider a consumer that consumes 2 teaspoons of sugar with each cup of coffee. For each cup of coffee with sugar the consumer gains 10 utils. a)Write down the utility function that gives the total utility if the consumer consumes S teaspoons of sugar and C cups of coffee. The consumer has assigned £7 per week to be spent on drinking coffee with sugar. The current price of coffee is £0.50 per cup and each spoon of sugar costs £0.10. b)Calculate the optimal weekly consumption bundle for this consumer. c)Does the consumer view C and S as complements or substitutes?Q6 If the utility function of consumption of a pizzas and y sodas is ry, the cost of pizzas is $5 each, the cost of sodas is $2 each, and the total amount available for snacks is $20. Find the amounts of pizzas and sodas for which consumption will be a maximum.Suppose that your family has just decided to adopt a cat named Hailey. You have a monthly budget of $40 that you can choose to spend on either cat food or other consumption goods. Assume the price of a can of cat food is $5 for the first 2 cans, but then it drops to only $3 per can for each additional can. All other consumption goods will be treated as a composite good, so you can think of this as simply the cash left over to spend on other items after buying cat food. On the following graph, use the green points (triangle symbol) to graph your family's budget constraint. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. OTHER CONSUMPTION (Amount per month) 50 45 40 35 30 25 20 15 10 5 Budget Constraint ?