Assume tony's marginal rate of substitution (mrs) of x for y is 12 -that is, mux muy 12 -the price of x is $39, and the price of y is $3. tony is spending too much of his income on y. do you agree or disagree? ○ a. o b. o c. o d. disagree. the mu per dollar spent on x is less than the mu per dollar spent on y. he should substitute y for x to increase utility. disagree. the mu per dollar spent on x is greater than the mu per dollar spent on y. he should substitute yfor x to increase utility. agree. the mu per dollar spent on y is greater than the mu per dollar spent on x. he should substitute x for y to increase utility. agree. the mu per dollar spent on xis greater than the mu per dollar spent on y. he should substitute x for y to increase utility.

Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a.what is the firm’s labor demand function? b.if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c.now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]

You hear your supervisor tell another supervisor that a fire drill will take place later today when the fire alarm sounds that afternoon you should

You are purchasing a bond that currently sold for $985.63. it has the time-to-maturity of 10 years and a coupon rate of 6%, paid semi-annually. the bond can be called for $1,020 in 3 years. what is the yield to maturity of this bond?