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2. Maya has $100 to spend, but she faces uncertainty. If accident occurs, she loses s50....
to the company oficer of an A consumer with| VN-M utility function U(x) = log(x) and...
to the company oficer of an A consumer with| VN-M utility function U(x) = log(x) and initial wealth W =$500,000 faces a probability p = 0.2 of incurring a monetary loss of d =$200,000 in an accident. An insurance company offers him insurance at a price r for each dollar of coverage. That is, if he wants to get back r dollars in case of an accident, he must pay rr dollars for insurance to the company up front. (a)...
18a 17. Cindy has $70 a month to spend, and she can spend as much time...
18a
17. Cindy has $70 a month to spend, and she can spend as much time as she likes playing golf and tennis. The price of an hour of golf is $10, and the price of an hour of tennis is $5. The table shows Cindy's marginal utility from each sport. Hours per month Marginal utility from golf Marginal utility from tennis 40 80 Make a table that shows Cindy's affordable combi- nations of hours playing golf and tennis. If...
Question 2 (Choice) Mrs. Gordon has 3 sons. She spends $100 on each boy during the...
Question 2 (Choice) Mrs. Gordon has 3 sons. She spends $100 on each boy during the holiday season to buy them chocolate and gummy bears. Assume the price of chocolate (good 1) is $2 and the price of gummy bears (good 2) is $5 per pound. Being a clever economist, she has estimated that the utility functions of the three boys are uFred(x1, 2) xjaz, wTed(xi, x2) = /x122 and uEd(x1,x2) =x12 a. For each boy find his marginal utility...
Gina works at a diner. She has 100 hours each week to spend at labor/leisure, earns...
Gina works at a diner. She has 100 hours each week to spend at labor/leisure, earns a wage of $15 per hour, and works in a fancy modern restaurant that doesn't involve tips from customers. She has no sources of non-labor income, but she does have to pay $200 per week in childcare for her precious baby Carlos (regardless of how many hours she actually utilizes the childcare). Her utility function is U 1. 0.001CL2 (3 points) Each week she...
Hours playing Hours golf playing tennis 70 2 10 12 T14 Q6 Cindy has $70 a...
Hours playing Hours golf playing tennis 70 2 10 12 T14 Q6 Cindy has $70 a month to spend, and she can spend as much time as she likes playing golf and tennis. The price of an hour of golf is $10, and the price of an hour of tennis is $5. The table shows Cindy's marginal utility from each sport. a) How many hours of golf and how many hours of tennis does she play to maximize her utility?...
5. A consumer who lives for two periods has a standard Cobb-Douglas utility func- tion: u(C1,C2)...
5. A consumer who lives for two periods has a standard Cobb-Douglas utility func- tion: u(C1,C2) = ccm where ct = consumption in period t and a + b = 1. Her income in period one is 11 = 500 and 12 = 400, and she can lend or borrow at interest rate r = 0.2. (a) Find the optimal consumption demand. (b) What values of a, if any, makes the consumer a borrower? Interpret this result. (c) Suppose now...
Suppose a consumer has income of $100 that she can spend on doctors' visits, which cost...
Suppose a consumer has income of $100 that she can spend on doctors' visits, which cost $20 each or "other goods," which we will represent with a composite good whose price is $1 per unit (i.e,the numeraire). (a) Illustrate her budget constraint The government is considering offering one of the following three health plans to con- sumers. Plan A will simply give everyone an additional $40 of income (perhaps through a tax cut). Under plan B, the government will give...
Q1. Sarah has decided to spend always $200 on clothing per month. Which one of the...
Q1. Sarah has decided to spend always $200 on clothing
per month. Which one of the statements below is true?
A. Sarah’s price elasticity of demand is one because she is
maintaining her clothing expenditures as a constant fraction of the
price.
B. Sarah’s income elasticity of demand is equal to zero because her
clothing expenditure does not depend on the price.
C. Sarah’s income elasticity of demand is infinite because she is
willing to spend a huge amount of...
Please see attached Pictures. This is a homework assignment for Legal environment of Business that i...
Please see attached Pictures. This is a homework assignment for
Legal environment of Business that i need help solving.
Stacy mails Jennifer an offer to sell Jennifer 43 bags of rice for $107.00. Jennifer replies to Stacy by mail, stating, " agree to pay $105.75 for 43 bags of rice. Neither Stacy nor Jennifer are merchants. What is the status of Stacy's offer. 1. a. Jennifer has accepted it b. Jenifer has rejected it and counteroffered c, Jennifer has breached...
Please answer question 1,2,3 in details and explanation CASE 4 HELPING HAND ACCOUNTING FUNDAMENTALS "I got...
Please answer question 1,2,3 in details and explanation
CASE 4 HELPING HAND ACCOUNTING FUNDAMENTALS "I got real lucky when I was fired," William Pendleton was fond of telling his employees and business associates. Pendleton was an insurance salesman in Illinois nea hobby, he loved to tinker around the house and he developed a local reputation as a person who knew how to "fix things." Pendleton decided to capitalize on this reputation and opened a hardware store, Helping Hand, based on...
to the company oficer of an A consumer with| VN-M utility function U(x) = log(x) and initial wealth W =$500,000 faces a probability p = 0.2 of incurring a monetary loss of d =$200,000 in an accident. An insurance company offers him insurance at a price r for each dollar of coverage. That is, if he wants to get back r dollars in case of an accident, he must pay rr dollars for insurance to the company up front. (a)...
18a
17. Cindy has $70 a month to spend, and she can spend as much time as she likes playing golf and tennis. The price of an hour of golf is $10, and the price of an hour of tennis is $5. The table shows Cindy's marginal utility from each sport. Hours per month Marginal utility from golf Marginal utility from tennis 40 80 Make a table that shows Cindy's affordable combi- nations of hours playing golf and tennis. If...
Question 2 (Choice) Mrs. Gordon has 3 sons. She spends $100 on each boy during the holiday season to buy them chocolate and gummy bears. Assume the price of chocolate (good 1) is $2 and the price of gummy bears (good 2) is $5 per pound. Being a clever economist, she has estimated that the utility functions of the three boys are uFred(x1, 2) xjaz, wTed(xi, x2) = /x122 and uEd(x1,x2) =x12 a. For each boy find his marginal utility...
Gina works at a diner. She has 100 hours each week to spend at labor/leisure, earns a wage of $15 per hour, and works in a fancy modern restaurant that doesn't involve tips from customers. She has no sources of non-labor income, but she does have to pay $200 per week in childcare for her precious baby Carlos (regardless of how many hours she actually utilizes the childcare). Her utility function is U 1. 0.001CL2 (3 points) Each week she...
Hours playing Hours golf playing tennis 70 2 10 12 T14 Q6 Cindy has $70 a month to spend, and she can spend as much time as she likes playing golf and tennis. The price of an hour of golf is $10, and the price of an hour of tennis is $5. The table shows Cindy's marginal utility from each sport. a) How many hours of golf and how many hours of tennis does she play to maximize her utility?...
5. A consumer who lives for two periods has a standard Cobb-Douglas utility func- tion: u(C1,C2) = ccm where ct = consumption in period t and a + b = 1. Her income in period one is 11 = 500 and 12 = 400, and she can lend or borrow at interest rate r = 0.2. (a) Find the optimal consumption demand. (b) What values of a, if any, makes the consumer a borrower? Interpret this result. (c) Suppose now...
Suppose a consumer has income of $100 that she can spend on doctors' visits, which cost $20 each or "other goods," which we will represent with a composite good whose price is $1 per unit (i.e,the numeraire). (a) Illustrate her budget constraint The government is considering offering one of the following three health plans to con- sumers. Plan A will simply give everyone an additional $40 of income (perhaps through a tax cut). Under plan B, the government will give...
Q1. Sarah has decided to spend always $200 on clothing
per month. Which one of the statements below is true?
A. Sarah’s price elasticity of demand is one because she is
maintaining her clothing expenditures as a constant fraction of the
price.
B. Sarah’s income elasticity of demand is equal to zero because her
clothing expenditure does not depend on the price.
C. Sarah’s income elasticity of demand is infinite because she is
willing to spend a huge amount of...
Please see attached Pictures. This is a homework assignment for
Legal environment of Business that i need help solving.
Stacy mails Jennifer an offer to sell Jennifer 43 bags of rice for $107.00. Jennifer replies to Stacy by mail, stating, " agree to pay $105.75 for 43 bags of rice. Neither Stacy nor Jennifer are merchants. What is the status of Stacy's offer. 1. a. Jennifer has accepted it b. Jenifer has rejected it and counteroffered c, Jennifer has breached...
Please answer question 1,2,3 in details and explanation
CASE 4 HELPING HAND ACCOUNTING FUNDAMENTALS "I got real lucky when I was fired," William Pendleton was fond of telling his employees and business associates. Pendleton was an insurance salesman in Illinois nea hobby, he loved to tinker around the house and he developed a local reputation as a person who knew how to "fix things." Pendleton decided to capitalize on this reputation and opened a hardware store, Helping Hand, based on...
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