Rational and irrational behavior

An economics professor went out to dinner one night. and observed one student drinking alot. The next day, a major test was scheduled to be taken. The professor's husband also a teacher, saw the student acting irrational. Under what conditions is the behavior irrational according to the properties of consumer behavior of economics? What situations could make the students behavior rational to show the best economical outcome?

law of diminishing marginal returns and the law of diminishing marginal rate of technical substitution

Explain the difference between the law of diminishing marginal returns and the law of diminishing marginal rate of technical substitution? Can you help me find some examples to prove the difference?

Capital to Labor Question

In a effort to stop the migration of many of the automoble manufacturing facilities from a city's area. The city council is condsidering passing a statute that would give investment tax credit to go auto manufacturing. This would reduce auto manufacturing costs of using capital and high tech equipment in their production processes. On the evening of the vote, local union officials voiced serious objections to this statute. Outline the bases of the arguement most liely used by union officials. Consider the impact the statute would have on auto manufacturing capital to labor ratio. As a representative of an auto manufacturing makers, how would you counter the offer with the uni... click for more

Textbook publishers have traditionally produced both U.S...

Textbook publishers have traditionally produced both U.S. and international editions of most leading textbooks. The U.S. version typically sells at a higher price than the international edition. Discuss how the internet might affect the ability of companies to implement this type of policy. Are there any other products (besides textbooks) that you can think of which fit this same story?

GDP calculations, GDP trends

Use the following data to answer questions 1-3 (can you please be sure to provide all calculations). Quantities Produced Price CD'S TENNIS RACQUETS CD'S TENNIS RACQUETS YEAR 2004 100 200 20 110 YEAR 2005 120 210 22 120 1. Calculate real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow? 2. Calculate the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase? 3. Now calculate real GDP for 2004 and 2005 ... click for more