Mattie consumes milk and cookies. Assume Mattie has a strictly diminishing marginal rate of substitution over these two goods. Suppose Mattie is currently spending all of her available income on a bundle of milk and cookies. At her current bundle of milk and cookies, Mattie's marginal utility from consuming an additional glass of milk is 2 utils and her marginal utility from consuming an additional cookie is 6 utils. If the price of a cookie is $3 and the price of a glass of milk is $1, which one of the following statements must be true? (Select A, B, C, or D) A. Mattie should consume more milk and fewer cookies B. Mattie should consume more cookies and less milk C. Mattie's current bundle of milk and cookies maximizes her utility D. There is not enough information to know whether Mattie should consume more milk or more cookies

Q: One reason why a tradable permit system will reduce pollution more efficiently than a…

A: Tradable permits are pollution limits which can be traded in order to create a market in the right…

Q: If MPL = 4, and MRTS = 8 what is MPK? Select one: O a. (1/2) O b. 2 O c. -2 O d. -24

A: Equipment and machinery employed in the production process are referred to as capital factors of…

Q: Suppose full employment output equals $25 trillion and actual output equals $14 trillion. If…

A: Aggregate demand is the sum of Consumption, Investment, government spending and net export.…

Q: N5    The following data is provided for a PPP project.   To the People To the Government…

A: A benefit-cost ratio is a marker, utilized in cost-benefit analysis, that endeavors to sum up the…

Q: For the adverse selection model by George Akerlof, for a given car, if the seller values the car at…

A: Adverse selection is a market mechanism that can lead to a market collapse. Akerlof's paper shows…

Q: Consider the cashflow (n = 10 years, MARR = e = 14%) Cash Flow A Investment Revenues P 180,000 P…

A: Particular Amount Investment 180000 Revenue 350000 Expenses 400000/year for 3 years and then…

Q: Twin deficits refer to the combination of government budget deficit and trade deficit.  The…

A: The budget is a document prepared by the government that includes a list of all the revenue streams…

Q: . Exactly 100 years ago, my greatgrandmother deposited P10450 in a large Philippine Bank as part of…

A: Present value is the value of investment in todays dollar.  Future value is the value of investment…

Q: Tradavia exports its world-famous giant sausages to Gourmland.  If the price of a sausage is 8…

A: Exports are goods and services manufactured in one country and sold to purchasers in another. An…

Q: Can you assign numbers to each of these. This is all made up so you can use whatever values they…

A: An extensive-form game is a representation of various factors like the sequencing of the player's…

Q: Suppose that you saved $4,700 at the beginning of the year and that at the end of the year your…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: firm is trying to decide whether to keep an item of construction equipment for another year. The…

A: The double declining balance (DDB) depreciation method is an approach to accounting that includes…

Q: What are the ethical issues of having increased automation in the workplace?

A: A moral dilemma that has to be resolved might occur in corporate refers to the ethical issue .  In…

Q: QUESTION 7 When salaries decrease, what does happen in the market? O a. Total surplus decreases. O…

A: In a market, when taking about salary of an individual,it can be said that it affects the supply and…

Q: QUESTION 4 In a duopoly, if the firms have agreed to jointly maximize profits, then each firm can…

A: When two companies jointly control all or almost all of the market for a certain commodity or…

Q: Economics is the study of scarcity. Public sector economics is the study of a. how to keep the…

A: In economics scarcity refers to the situation where the goods and services in the economy become…

Q: PROBLEM (4) You have the Cobb-Douglas utility function u(x, y) = xy over apples (x) and plums (y)…

A: To construct a set of feasible set of bundle we need to keep both the budget income and weight…

Q: 1. Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn…

A: Note: You have uploaded two questions at a time. Hence, we shall answer only the first one for you.…

Q: Derive graphically AS curve and explain in depth why the short-run AS curve is upward sloped

A: The aggregate supply curve is the total production done by firms within the boundaries of a nation…

Q: Suppose there is some hypothetical economy in which households spend $0.50 of each additional dollar…

A: The marginal propensity to save is the proportion of family income that is saved for each extra…

Q: Q4) Assume you administered a test in September and then again in November. You obtained a…

A: Correlation between two variables shows the relationship between the two variables.  This shows how…

Q: Which is not a valid argument favoring the use of output regulation over input regulation? a. Firms…

A: The regulation is a type of rule that is maintained by a higher authority.  When an environment…

Q: Compared to digital goods, traditional goods have: lower inventory costs. O lower marginal costs per…

A: Digital goods are the new technology goods produced to satisfy the needs of the consumers. These…

Q: 1. In a simple economy, people consume only 2 goods, market basket of goods used to compute the CPI…

A: Inflation shows the increase in price level over years.  Inflation rate shows the increase in price…

Q: The following graph plots an aggregate demand curve.   Using the graph, shift the aggregate demand…

A: Absolute income hypothesis: This was proposed by Keynes which explains that how much a household…

Q: Assignment #1 A large wood products company is negotiating a contract to sell plywood overseas. The…

A: Firms will continue to increase their production until it reaches their optimum amount. The optimum…

Q: Use the table below to answer question. The table shows the demand schedule for tickets to watch…

A: A perfect competition is by far the most competitive business possible, with no monopolies,…

Q: In economics, what is an example of selection?

A: Economics refers to one of the branch of social studies which focuses on the living of people on the…

Q: Starting at age 35, you deposit $2000 a year into an IRA account for retirement. Treat the yearly…

A: Disclaimer- “Since you have asked multiple question, we will solve the three question for you as per…

Q: 1. Explain fully the difference between Utilitarianism and Libertarianism. 2. Describe the the…

A: Utilitarianism and libertarianism are at odds with one another. According to utilitarianism, one…

Q: Edit que 3. Consider the following production function: y=f(L,K)=min{L,2K} . (c) Determine the…

A: In a long run perspective of production all the inputs are variable in nature in contrast to short…

Q: Consider a monopoly facing a demand defined by P = 10 - 4Q^dP=10-4Qd. Suppose that AVCAVC is…

A: A monopolist will produce where MR = MC  MR is the marginal revenue and is defined as the change in…

Q: An asset that was purchased for $10000 is expected to be responsive to inflation. The revenue in the…

A: Given: Asset purchased for $10000 Initial year revenue = 4000 expected rise in revenue next 3 years…

Q: You have been hired as a consultant by building contractor, who have been sued by the owners'…

A: Sample selection bias refers to the bias that occurs during the selection of the non-random data…

Q: 2. Why is there a need to reduce to the minimum level the income inequality in the Philippines.…

A: Income inequality refers to the situation where certain sectors of the economy suffer from poverty…

Q: Q2 Workers' skills in one industry do not affect the labor market in other industries. True False…

A: Note: You have uploaded multiple questions at a time. Hence, we shall answer only the first one for…

Q: The countries of Nickeltown and Lykesville each produce two goods: Ovens and Dishwashers. The table…

A: Comparative Advantage: A country have comparative advantage in producing a good implies that the…

Q: Consider a 2-good, 2-agent pure exchange economy where there are 10 units of each good and…

A: For Individual 1 - Utility function : Ua = 2xa1 + 2xa2  For Individual 2 - - Utility function : Ub =…

Q: Consider the demand curve for hair cuts is given by Q=100-2P and the market equilibrium price equals…

A: A consumer surplus happens when the price that consumers pay for a product or service is less than…

Q: Why are bank failures considered to have a greater effect on the economy than other types of…

A: Bank refers to a financial institution that is accepts deposits from the public and business firms,…

Q: if u.s. quotas on imported goods were eliminated: a) the supply of sugar in the U.S. would shift to…

A: We have show that  Quotas are set so that the prices of imported goods increase for consumers. So…

Q: The government expenditure multiplier is the effect of a change in government expenditure (G) on…

A: Aggregate expenditure is the sum of consumption, investment, government spending, and net exports.…

Q: There are two goods and John's preferences can be represented by u: R30→R given by u(x) = x₁x₂. His…

A: Given Utility function U=X113X223Price of the X1=P1=1Price of the X2=P2=2Income=12Budget…

Q: In this graph, if firms are producing at level Y3, then inventories will, inducing firms to…

A: Actual expenditure is the amount spent actually while production while planned expenditure is the…

Q: Money is Group of answer choices the value of all coins and currency in circulation at any time.…

A: It serves as a means of communicating values and pricing. It is the primary indicator of wealth…

Q: Expected inflation is 3%, and initially the output gap is zero (percent). A(surprise) tariff…

A: According to the question, it is given that : Expected Inflation = 3% Cost-Push Inflation = - 0.5%…

Q: The Cincinnati Water Works (CWW) serves approximately 1 million customers. Its billing system allows…

A: Modernization refers to the adoption of the latest technology by replacing the older one.…

Q: QUESTION 16 Jose's restaurant operates in a perfectly competitive market. At the point where…

A: In the perfectly competitive market, if a firm is producing at a level where MR equals MC, this…

Q: If MPK = 4, and MRTS = 2 what is MPL? Select one: O a. 2/4 O b. O c. Ń ∞ A -4 8 O d. -2

A: Capital components of production are the tools and machines used in the production process. Capital…

Q: 2. Suppose the Harrisonburg city council is concerned about the increase in crime in the city.…

A: Given that; It cost society $20000 when an offender is caught, tried and convicted they are sent to…