Answer:
Optimal package size = 4 units
Optimal package price = $20
Explanation:
P = 8 - 1.5Q and C(Q) = 2.0Q, MC = 2
To obtain optimal package size, we put
Price is equal to the marginal cost, P = MC
8 - 1.5Q = 2
1.5Q = 6
Q = 6 ÷ 1.5
= 4
Therefore,
Optimal package size = 4 units
Hence,
Optimal package price:
= 0.5[8 - 2] × 4 + 2 × 4
= 12 + 8
= $20
1.) Many American workers lost their jobs
2.) Uneducated laborers are now becoming unemployed
3.) An education is more necessary to get a job/be employed
A free market is a type of economy which allows the manufacturers and consumers to interact resulting to the relationship between the supply and demand market. This is different from the command market in which the government controls solely. One of the countries with strong free market economy are B. US, UK, HK and Singapore.
Answer:B
Explanation:
This is because as one's income increases his aggregate demand also increases as they both have direct relationship with each other.
Answer:
The plot of the yields is attached.
Explanation:
i) 6%, 7%, 8%, 7%, 6%
Interest rate on 1 year maturity = 6%/1 = 6%
Interest rate on2 year maturity = (6%+7%)/2 = 6.5%
Interest rate on 3 year maturity = (6%+7%+8%)/3 = 7%
Interest rate on 4 year maturity = (6% + 7% + 8% + 7%)/4 = 7%
Interest rate on 5 year maturity = (6% + 7% + 8% + 7% + 6%)/7 = 6.8%
ii)6%, 5%, 4%, 5%, 6%
Interest rate on 1 year maturity = 6%/1 = 6%
Interest rate on 2 year maturity = (6% + 5%)/2 = 5.5%
Interest rate on 3 year maturity = (6% + 5% + 4%)/3 = 5%
Interest rate on 4 year maturity = (6% + 5% + 4% + 5%)/4 = 5%
Interest rate on 5 year maturity = (6% + 5% + 4% + 5% + 6%)/5 = 5.2%
