Business, 14.07.2020 19:01 cicimarie2018
Carlos consumes only two goods, apples and bananas. His utility function is U(a, b)= a3b2. Before trade, his initial endowment is wa apples and wb bananas. After he trades to his optimal consumption point at these prices, the relative prices change. Carlos is allowed to make further trades if he wishes.
a. Carlos will definitely be better off after the price change.
b. Carlos will be better off if the price of the good he was selling goes up and worse off if the price of the good he was selling goes down.
c. Carlos will be better off if the price of the good he was selling goes down and worse off if the price of the good he was selling goes up.
d. Carlos’s utility will not be affected by the change.
Answers: 1
Other questions on the subject: Business
Business, 21.06.2019 23:00, Tywan566
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $12,500 are payable at the beginning of each year. each is a finance lease for the lessee. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) situation 1 2 3 4 lease term (years) 3 3 3 3 asset’s useful life (years) 3 4 4 6 lessor’s implicit rate (known by lessee) 14 % 14 % 14 % 14 % residual value: guaranteed by lessee 0 $ 5,000 $ 2,500 0 unguaranteed 0 0 $ 2,500 $ 5,000 purchase option: after (years) none 2 3 3 exercise price n/a $ 7,500 $ 1,500 $ 3,500 reasonably certain? n/a no no yes
Answers: 1
Business, 22.06.2019 18:30, miller5452
Amanufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. in the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant for $2,100,000. what should the manufacturer do?
Answers: 1
Business, 23.06.2019 10:30, yabfegi9669
Grant wants to transfer the ownership of his warehouse to holly by deed. to do so requires
Answers: 2
You know the right answer?
Carlos consumes only two goods, apples and bananas. His utility function is U(a, b)= a3b2. Before tr...
Questions in other subjects:
Mathematics, 17.04.2020 02:50
