2. Suppose Arda's utility for apples (A) and oranges (0) can be represented as U=A+20.- a) Draw the indifference curve that yields a utility level 5.
b) Calculate MUA, MUO, and MRS of A for 0 on that indifference curve.
c) They have $5 per week for apples and oranges. Pa= $1/pound and Po= $2/pound.
How much apples and oranges would they consume a week? Show on the graph.
d) Suppose now Pa= $1/pound and Po= $2.5/pound. Find their optimal consumption
bundle. Show on the graph.

If a bond is issued at a premium the effective interest rate is most likely

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?

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