Why does bundle A in the figure below not maximize the agent's utility? 15 Y 10 5 0 A B 2 D 10

Q: Suppose that you inherit $10,000 and put your money into a savings account that grows at an…

A: Rate of return refers to the rate at which a certain investment gives back to the investor in the…

Q: What is produce.?

A: Let's think about the first issue: which goods should be produced, and in what quantities? Producing…

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A: The forward conversion scale is the pace of trade, settled upon now, for an unfamiliar trade market…

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A: Given information; x = 6200 - 50p C = 7400 + 70x Where x is the number of scales that can be sold at…

Q: TRUE OR FALSE? An increase in price tends to make consumer buy less and sellers to sell more. A…

A: The economic theory of supply and demand seeks to explain the link that exists between the…

Q: @0 (3) (d) 9. C I a foodien 6. Troy buys a sound system priced at $8,820.00 but paid $9,702.00 with…

A: It is given that the price of the product is $8,820.00 and the consumer purchases the commodity at…

Q: In the bread market, Maria buys different amounts of bread conditional on whether the price is $2,…

A: Demand curve shows different combinations of price and quantity demanded.

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A: People who are working or has a job are considered employed. People who are actively looking for a…

Q: Which of the following statements is a challenge to the use of natural gas? a. Fracking has decrease…

A: Natural gas, coal, nuclear are different sources of energy.

Q: Everything U Want Stores is trying to decide whether to keep or drop the hardware department in its…

A: Sunk cost refers to the cost which once incurred can not be recovered. The opportunity cost is…

Q: What amount of money invested today at 15% interest can provide the following scholarships: P 30 000…

A: The measure that depicts current stream of income flows being discounted at a specified rate of…

Q: Which economic school relies most heavily on "sticky prices" to explain the effects of Aggregate…

A: The father of modern macroeconomics is the British economist John Maynard Keynes, who founded his…

Q: Which one does not belong to the externalities contributed by oil? a. Emissions that pollute the…

A: Externality is referred to as a cost or benefit imposed on the third party which is not involved in…

Q: Economics = e) Economic profit = (18,400 – 11,499)/0.97 = £7,114He should enter the business since…

A: The difference between the income obtained from the sale of a product and the costs of the inputs…

Q: For each of the following, indicate whether the statement is True, False, or Uncertain, and explain…

A: 1. In the exchange problem, it is inefficient to give everything to one person.  The statement above…

Q: ) Consider a country in which three goods (A, B, and C) are produced. The following table shows…

A: Given  Base year = year 1 We have to calculate the GDP deflator between year 1 and year 2 From the…

Q: L Moving to another question will save this response. Question 10 Price Level P3 P2 P₁ Y₁ LRAS Y₂ an…

A: Leftward shift in SRAS shows decrease in short run aggregate supply.

Q: What is Globalization?

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Two firms are competing to establish one of two new wireless communication standards, A or B. A…

A: Pure Strategy Nash Equilibrium is achieved at the point where both firms choose the strategy ,…

Q: 17. () Suppose policymakers take actions that cause a contraction of aggregate demand. Which of the…

A: Meaning of contraction of demand: When the quantity demanded decreases due to a increase in the…

Q: In dynamic pricing environment where prices change regularly the decision to open or close different…

A: Dynamic pricing:- Other names for dynamic pricing include price increase and time-based costing. By…

Q: From our discussion of interest rate frameworks, we can guess that the demand for liquidity is…

A: Liquidity refers to the flow of money into the economy which increased when the banks lower the rate…

Q: Given the utility function Log Y = 0.42logX1 + 0.58logX2   Find the demand function

A: Given:  Log Y = 0.42logX1 + 0.58logX2  The budget line equation is;…

Q: A) Consider the Taylor rule: rt = (s1)[rt−1] + (s2)[rn + ayY˜+ aπ(πt πT )]. Assume target inflation…

A: According to the Taylor Rule, the Federal Reserve should increase rates when inflation exceeds the…

Q: 4    You quit your job as an analyst making $50,000. You then take your $500,000 in savings and…

A: An economic profit or loss is the distinction between the revenue received from the sale of an…

Q: What is the effect of a rise in the income tax on interest income? A rise in the income tax on…

A: Interest income is the sum you procure from various monetary items, records and speculations. It…

Q: When sellers expect the price of allergy medicine to fall in the future, today in the market for…

A: Supply curve shows different levels of quantity supplied at different prices.

Q: A company operates in a competitive market, selling each unit of output for a price of $20 and…

A: Price per output = $20 Market wage per labour per day = $330 Value of marginal product of labour…

Q: Which of the following statements is not true? Multiple Choice Public goods are only provided by…

A: In terms of the economy, governments are responsible for establishing economic laws, often known as…

Q: Business cycles are     a short run phenomenon     a long run phenomenon     predictable…

A: Business cycles are intervals of expansion followed by recession in economic activity. It shows the…

Q: To ensure that utilities receive a normal rate-of-return, regulators set price equal to: a.…

A: Utilities are provided by monopolists due to capital intensive infrastructure. The monopolies…

Q: Which of the following policy combinations would cause a rise in the government budget deficit?…

A: Government budget deficit depends on how much government is spending and how much it is earning.

Q: mall plant manufactures riding lawn mowers. The plant has fixed costs (leases, insurance, and so on)…

A: Break even situation refers to the economic condition where the firm earns zero profit or total…

Q: An increase in disposable income worsens the current account because: O A. consumers demand more of…

A: Disposable income, otherwise called dispensable individual pay (DPI), is how much cash that an…

Q: A machine was purchased at an original cost of P3,250,114 with a salvage value of P386,985. The…

A: The depreciation rate per unit using the service output method of depreciation is calculated as…

Q: 5. Production Function Question: Why don't we care about production-maximization in the context of…

A: Below are the solutions to questions 5, 6, and 7.

Q: 5. Two alternatives are under consideration for providing energy at a remote research station, one…

A: As per the question one among two options that is, Geothermal and Solar required to be selected Rate…

Q: At prices (p1, p2) = ($4, $2), Ivan buys the bundle (x1, x2) = (8, 20). At prices (p1¹ p2') = ($2,…

A: The theory of  revealed preferences was given by Samuelson to study the preference patterns of…

Q: Firms that benefit from economies of scale: a. Performs more efficiently when output is small.…

A: Economies of scale refers to the situation where the average cost of production declines over the…

Q: Which of the following explains the importance of education in economic growth? Group of answer…

A: Human capital is an immaterial asset not listed on an organization's monetary record. Human capital…

Q: Why does the rate of return (RoR) regulation stimulate more than the efficient level of capital…

A: Monopolies are type of market firm where there's a single seller and thus posses power to control…

Q: 6. An important routine function of the Federal Reserve Bank is to: A. supervise the liquidation of…

A: Correct answer is option D

Q: Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land,…

A: Accounting profit is the profit or the net income for the firm and the company after reducing all…

Q: An engineer must decide between two ways to pump concrete to the top of a seven-story building. Plan…

A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…

Q: An engineer who is about to retire has accumulated $50,000 in a savings account that pays 6% per…

A: Lets note down the information given to us as follows:- P = 50,000 i = 6% n = 10

Q: A computer hardware firm sells both laptop computers and printers. Through the magic of focus…

A: The measure that depicts various quantities of goods and services being demanded at various levels…

Q: If orange juice is considered a normal good, then an increase in income in Ventura will have the…

A: Demand curve shows an inverse relationship between price and quantity demanded. It slopes does…

Q: A city is spending $19.3 million on a new sewage system. The expected life of the system is 40…

A: Capitalized value is the present valuation of an asset, most often real estate, based on a…

Q: TRUE OR FALSE?   An improvement in the technology will reduce the supply of goods while an increase…

A: FACTORS THAT SHIFT SUPPLY CURVE Favourable natural conditions Fall or rise in input cost (cost of…

Q: Show complete solution David won a lottery worth $10,000,000. He has opted for an annuity payment…

A: Future value (FV) is the value of an ongoing asset eventually founded on an expected growth rate.